The cost of producing an additional unit of a good is not the same as the average cost of the good.

Question

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The cost of producing an additional unit of a good is referred to as the marginal cost, which can vary and is not necessarily the same as the average cost of producing the good. The average cost takes into account the total cost of production divided by the number of goods produced, while the marginal cost focuses on the cost of producing one more unit.

The Cost of Producing an Additional Unit of a Good