The marginal cost curve of a firm measures

Question

Quizplus · Accepted Answer

The marginal cost curve of a firm measures the additional cost of producing one more unit of output, which includes both variable costs (such as labor and materials) and fixed costs (such as rent and equipment). These costs are internal to the firm and are therefore considered private costs. Option A, B, and D are incorrect because they refer to external costs (costs that affect parties other than the producer), which are not represented by the marginal cost curve.

The Marginal Cost Curve of a Firm Measures