The opportunity cost of producing one more unit of a good or service is the
A) marginal cost.
B) marginal benefit.
C) efficient level of production.
D) market outcome.
E) price of the good or service.

Question

Quizplus · Accepted Answer

The opportunity cost of producing one more unit of a good or service is the marginal cost. Marginal cost refers to the cost of producing an additional unit of a good or service, and it includes the cost of using additional resources and the foregone opportunity of using those resources for alternative purposes. Therefore, the best answer is A.

The Opportunity Cost of Producing One More Unit of a Good