The cost of making one more unit is called
A) marginal cost.
B) unit cost.
C) variable cost.
D) fixed cost.

Question

Quizplus · Accepted Answer

Marginal cost is the cost incurred in producing one additional unit of a product. It takes into account the additional cost of producing one more unit of a product. Therefore, option A is the correct answer. Option B is incorrect because unit cost is the total cost of production divided by the total number of units produced. Option C is incorrect because variable cost is the cost that varies with the level of production. Option D is incorrect because fixed costs do not change with the level of production.

The Cost of Making One More Unit Is Called