Marginal cost tells us the
A)value of all resources used in a production process.
B)marginal increment to profitability when price is constant.
C)amount by which total cost rises when output is increased by one unit.
D)amount by which output rises when labor is increased by one unit.

Question

Quizplus · Accepted Answer

Marginal cost is the increase in total cost when output increases by one unit. It specifically measures the additional cost of producing one more unit of output. Therefore, it is the amount by which total cost rises when output is increased by one unit.

Marginal Cost Tells Us the