Marginal cost is defined as the change in ________ cost when output changes by one unit.In the short run,marginal cost can also be measured by the change in ________ cost when output changes by one unit.
A)total; fixed
B)variable; fixed
C)fixed; variable
D)total; variable

Question

Quizplus · Accepted Answer

Marginal cost is defined as the change in total cost when output changes by one unit. In the short run, since fixed costs do not change with a change in output, the change in variable cost when output changes by one unit is equal to the change in total cost. Therefore, marginal cost can also be measured by the change in variable cost when output changes by one unit. This is consistent with option D, which refers to total and variable costs.

Marginal Cost Is Defined as the Change in ________ Cost