"Marginal cost" is:
A) always less than average variable cost.
B) more affected by fixed costs than by variable costs.
C) the change in total cost that results from producing one more unit.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost that results from producing one more unit. It is not always less than average variable cost and is affected by both fixed and variable costs. Therefore, options A and B are incorrect. Option D is partially correct but C is the best answer.

"Marginal Cost" Is