Marginal cost is equal to
A)total cost divided by output.
B)the increase in total cost divided by the increase in output.
C)the increase in total cost divided by the increase in labour input,given the amount of capital.
D)total variable cost minus total fixed cost.
E)the increase in total cost divided by the increase in variable cost.

Question

Quizplus · Accepted Answer

Marginal cost is the increase in total cost that arises from an extra unit of production. Therefore, it is calculated as the increase in total cost divided by the increase in output, which is option B.

Marginal Cost Is Equal to