3 years ago

What is the best definition of marginal cost

Social Studies

2 answers:

PSYCHO15rus [73]3 years ago

5 0

The answer would come out to be D.

loris [4]3 years ago

3 0

Marginal Cost is the variation (increase or decrease) of the costs of a production run when is increased by one additional unit of any given item, and it is calculated when the <em>breakeven point</em> has already been already reached.

Its usage is crucial for companies because it allows them to set a parameter that defines its optimum production quantity (also known as the "sweet spot") in which, if they operate within, it can maximize its profits.

Therefore, the answer is B: The price of producing one additional unit of a good.

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