Marginal costs are defined as
A) the change in total costs due to a one-unit change in production.
B) costs that are viewed as marginal; of little or small importance.
C) costs that represent a change, but one that cannot be measured correctly.
D) the change in the decisions that are made by households and firms.

Question

Quizplus · Accepted Answer

Marginal costs refer to the additional costs incurred when producing one more unit of a good or service. It is calculated by taking the change in total costs and dividing it by the change in quantity. Therefore, option A is the correct definition for marginal costs.

Marginal Costs Are Defined as