The cost of making one more unit is called:
A)marginal cost.
B)unit cost.
C)variable cost.
D)none of the above

Question

Quizplus · Accepted Answer

Marginal cost is defined as the cost of producing one more unit, so this is the most appropriate term for the definition given. Unit cost is the average cost of producing each unit, which is not exactly the same as the cost of producing one more unit. Variable cost is a component of total cost that varies with production level, but it is not the same as the cost of producing one more unit by itself. Therefore, A) marginal cost is the best choice.

The Cost of Making One More Unit Is Called