The change in variable costs that occurs when production is increased by one unit is referred to as the:
A) marginal cost.
B) average cost.
C) total cost.
D) scenario cost.
E) net cost.

Question

Quizplus · Accepted Answer

The change in variable costs when production increases by one unit is known as the marginal cost. The marginal cost is the increase in total cost due to the production of one additional unit.

The Change in Variable Costs That Occurs When Production Is