A bus is mostly filled with passengers and ready to travel from Los Angeles to San Francisco. At the last minute, a person comes running up to the bus and takes a seat. The change in the bus company's total cost as a result of transporting one more passenger on this trip is called:
A) marginal cost.
B) average total cost.
C) variable cost.
D) fixed cost.

Question

Quizplus · Accepted Answer

The change in cost as a result of transporting one more passenger is known as the marginal cost.

A Bus Is Mostly Filled with Passengers and Ready to Travel