The change in total cost that results from producing and marketing one additional unit of product is referred to as
A)fixed cost.
B)total cost.
C)marginal cost.
D)variable cost.
E)unit cost.

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost that results from producing and marketing one additional unit of product. Fixed cost is the cost that remains constant regardless of the level of production, while variable cost changes in proportion to the level of production. Total cost is the sum of fixed and variable costs. Unit cost is the average cost per unit, calculated by dividing the total cost by the number of units produced.

The Change in Total Cost That Results from Producing and Marketing