Which of the following measures of cost is best described as "the increase in total cost that arises from an extra unit of production?"
A)variable cost
B)average variable cost
C)average total cost
D)marginal cost

Question

Quizplus · Accepted Answer

Marginal cost is the increase in total cost that arises from an extra unit of production. Therefore, option D is the correct answer. Option A (variable cost) refers to costs that vary with the level of production output, option B (average variable cost) is the variable cost per unit of output, and option C (average total cost) is the total cost per unit of output.

Which of the Following Measures of Cost Is Best Described