The cost of a one-unit increase in an activity is called the
A) margin.
B) marginal cost.
C) rational cost.
D) opportunity benefit.
E) marginal benefit.

Question

Quizplus · Accepted Answer

The cost of a one-unit increase in an activity is called the marginal cost. This cost is important in determining the optimal level of an activity, as it helps to determine at what point the cost of an additional unit outweighs the benefit.

The Cost of a One-Unit Increase in an Activity Is