The addition to total costs associated with the production of one more unit of output is referred to as
A) average cost.
B) marginal cost.
C) opportunity cost.
D) overhead cost.

Question

Quizplus · Accepted Answer

The addition to total costs associated with the production of one more unit of output is referred to as marginal cost. Average cost is the total cost divided by the total number of units produced. Opportunity cost is the cost of forgoing the next best alternative. Overhead cost is the fixed cost of running a business (such as rent and utilities) that is not directly tied to the production of a specific good or service.

The Addition to Total Costs Associated with the Production of One