Marginal cost is defined as
A) the additional cost attributable to the last unit produced.
B) the change in fixed costs associated with the production of one more unit of output.
C) the difference between total revenue and total cost.
D) price times quantity.

Question

Quizplus · Accepted Answer

Marginal cost is the additional cost incurred when producing one more unit of a good or service. Therefore, option A - the additional cost attributable to the last unit produced - is the correct definition. Options B, C, and D do not accurately describe the concept of marginal cost.

Marginal Cost Is Defined as