Question

Marginal cost is ____________. a. The cost of producing an additional unit of output b. The total cost of production c. The revenue from selling an additional unit of output d. none of the above

Answer 1

Answer:

a. The cost of producing additional unit of output

Explanation:

Marginal cost refers to the extra cost incurred to produce additional unit of output or service.

Often times production or manufacturing companies tends to produce more units of outputs maybe to meet recurrent demand. The cost expended in the production of such extra units of output is called marginal cost. It is computed as change in the cost of producing additional goods divided by change in the number of goods produced.