Question

Marginal cost is the: a. rate of change in total fixed cost that results from producing one more unit of output. b. change in total cost that results from producing one more unit of output. c. change in average variable cost that results from producing one more unit of output. d. change in average total cost that results from producing one more unit of output.

Answer 1

Answer:

b. change in total cost that results from producing one more unit of output.

Explanation:

Marginal cost is the increase in in total cost as a result of producing one more additional unit. It is the extra cost incurred when an additional unit of a product is produced.

Answer 2

Answer:

Option B. Change in total cost that results from producing one more unit of output.

Explanation:

The reason is that the marginal cost is the increase in the total cost due to production of an extra unit which tells about whether the cost increase due to producing an extra unit is higher than the benefit of selling one extra unit or not. If the cost of producing an extra unit is highe than the benefit drawn then their is no value in producing that one extra unit.