The marginal cost of an activity is the
A) change in the costs of the activity divided by the change in the level of the activity.
B) same as the total costs of the activity.
C) ratio of total costs to the level of the activity.
D) change in the level of the activity divided by the change in the costs of the activity.
E) reservation costs.

Question

Quizplus · Accepted Answer

Marginal cost is calculated by taking the change in the costs of an activity and dividing it by the change in the level of the activity. It measures the additional cost of producing one more unit of output.

The Marginal Cost of an Activity Is the