Marginal cost
A)measures how total cost changes when input prices change.
B)measures how total cost changes when one more unit of output is produced.
C)is less than average cost when average cost is decreasing.
D)both a and b
E)both b and c

Question

Quizplus · Accepted Answer

Marginal cost specifically refers to the change in total cost that arises when the quantity produced is incremented by one unit. Therefore, it measures how total cost changes with an additional unit of output (B) and is indeed less than average cost when the average cost is decreasing, as it pulls the average cost down (C).

Marginal Cost