Asked by Braeli Payne on Jul 14, 2024
Verified
Marginal cost
A) Is the incremental cost incurred by producing an additional unit of output.
B) Is the total cost of production.
C) Is the total fixed cost of production.
D) None of the above
Marginal Cost
The expenditure required to produce one more unit of a product or service.
Incremental Cost
The additional cost associated with producing one more unit of a product or service.
Additional Unit
The next unit of product or service to be produced beyond the current production level, often considered in the context of marginal cost analysis.
- Understand the meaning and significance of marginal concepts in economics, such as marginal revenue, marginal cost, and marginal benefit.
- Distinguish between average cost and marginal cost and their implications for production and pricing strategies.
Verified Answer
VB
Virgil BurnsJul 16, 2024
Final Answer :
A
Explanation :
Marginal cost is defined as the additional cost incurred by producing one additional unit of output. It is the change in total cost when one more unit of output is produced.
Learning Objectives
- Understand the meaning and significance of marginal concepts in economics, such as marginal revenue, marginal cost, and marginal benefit.
- Distinguish between average cost and marginal cost and their implications for production and pricing strategies.