Table 7-4
-Marginal cost
A)is the increase in total cost resulting from production of one additional unit of output.
B)is the cost of the marginal unit of output.
C)and the average cost curve are U shaped.
D)All of the responses are correct.

Question

Table 7-4  
-Marginal cost
A)is the increase in total cost resulting from production of one additional unit of output. 
B)is the cost of the marginal unit of output. 
C)and the average cost curve are U shaped. 
D)All of the responses are correct.

Quizplus · Accepted Answer

Marginal cost is the increase in total cost resulting from production of one additional unit of output. It is also the cost of the marginal unit of output. The average cost curve is U shaped. Therefore, all of the responses are correct.