Asked by Bertrand Veronique on Jul 15, 2024
Verified
A firm's marginal cost is:
A) the ratio of the change in total cost to the change in the quantity of output.
B) the change in total cost divided by the change in labor input.
C) the slope of the average fixed cost curve.
D) total cost divided by output.
Marginal Cost
The investment required to manufacture one more unit of a product or service.
- Survey the effect of proliferating and receding marginal returns on marginal cost.
Verified Answer
KD
Katherine DoughtyJul 15, 2024
Final Answer :
A
Explanation :
Marginal cost is the additional cost incurred by a firm to produce one more unit of output. It is calculated as the ratio of the change in total cost to the change in the quantity of output. Thus, option A is the correct definition of marginal cost.
Learning Objectives
- Survey the effect of proliferating and receding marginal returns on marginal cost.