In order to calculate marginal cost, the change in ______________ is divided by the amount of change in quantity.
A) either total cost or average cost
B) increasing marginal returns
C) either total cost or variable cost
D) decreasing marginal returns

Question

Quizplus · Accepted Answer

Marginal cost is calculated by dividing the change in either total cost or variable cost by the change in quantity produced. This is because marginal cost reflects the additional cost incurred for producing one more unit of a good or service, which directly relates to changes in total or variable costs, not average cost or marginal returns.

In Order to Calculate Marginal Cost, the Change in ______________