Marginal cost is the
A) cost of an increase in an activity.
B) total cost of an activity.
C) cost of an activity minus the benefits of the activity.
D) cost of all forgone alternatives.
A cost due to an increase in activity is called
A) an incentive loss.
B) a marginal cost.
C) a negative marginal benefit.
D) the total cost.
Laura is a manager for HP. When Laura must decide whether to produce a few additional printers, she is choosing at the margin when she compares
A) the total revenue from sales of printers to the total cost of producing all the printers.
B) the extra revenue from selling a few additional printers to the extra costs of producing the printers.
C) the extra revenue from selling a few additional printers to the average cost of producing the additional printers.
D) HP's printers to printers from competing companies, such as Lexmark.
A lawn service is deciding whether to add an additional employee to its summer crew. The marginal cost of hiring this worker depends on the
A) total amount paid to only the new worker.
B) total amount paid to all previously hired workers.
C) the total amount paid to all the workers, both the new one and the previously hired workers.
D) the additional revenue created by having an additional worker minus the cost of hiring the worker.