Question

What is marginal cost? A. It is the change in a company’s total output arising from a change in the total price of one unit. B. It is the change in a company’s total revenue arising from a change in total output of one unit. C. It is the change in a company’s total cost arising from a change in total output of one unit. D. It is the change in a company’s average revenue arising from a change in total output of one unit.

Answer 1

Answer: C. It is the change in a company’s total cost arising from a change in total output of one unit.

Explanation:

Marginal cost is known to be a change in the total cost of producing or manufacturing an extra unit of one good or product. This change can be as a result of increase or decrease in production which can be derived at by calculating the total cost of a good or product by the change in output of a good or product.  

Answer 2

Answer- C. It is the change in a company's total cost arising from a change in total output of one unit. The increase or decrease in the total cost of a production run for making one additional unit of an item.