Marginal cost is defined as the
A)change in total cost resulting from an additional unit of output.
B)change in fixed cost resulting from an additional unit of output.
C)cost of an additional unit of a variable factor of production.
D)difference between average total cost and average variable cost.
E)cost per unit when the firm is operating at capacity.

Question

Quizplus · Accepted Answer

Marginal cost is the change in total cost resulting from producing an additional unit of output. It is calculated by taking the difference in total cost between producing one more unit and producing the current number of units.

Marginal Cost Is Defined as the