The cost of a one-unit increase in an activity is called the
A) opportunity benefit.
B) rational cost.
C) marginal cost.
D) marginal benefit.
E) margin.

Question

Quizplus · Accepted Answer

The cost of a one-unit increase in an activity is called the marginal cost. Marginal cost refers to the additional cost of producing one more unit of output. It is important in determining the optimal level of production and pricing strategy.

The Cost of a One-Unit Increase in an Activity Is