The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2

-Which of the following is true of marginal cost?
A)Marginal cost is the cost per unit of output produced.
B)Marginal cost is the change in total cost divided by the change in total output.
C)Marginal cost curve is negatively sloped at the profit-maximizing level of output.
D)Marginal cost is equal to total cost divided by the quantity of output.
E)Marginal cost initially increases with an increase in output but subsequently declines.

Question

The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2
 
-Which of the following is true of marginal cost?
A)Marginal cost is the cost per unit of output produced. 
B)Marginal cost is the change in total cost divided by the change in total output. 
C)Marginal cost curve is negatively sloped at the profit-maximizing level of output. 
D)Marginal cost is equal to total cost divided by the quantity of output. 
E)Marginal cost initially increases with an increase in output but subsequently declines.

Quizplus · Accepted Answer

Marginal cost is defined as the change in total cost that arises when the quantity produced is incremented by one unit; it is calculated by dividing the change in total cost by the change in quantity of output.

The Table Given Below Reports the Marginal Revenue and Marginal