Marginal Cost Is the ________One More Unit of a Good

question 131

Multiple Choice

Marginal cost is the ________one more unit of a good and ________of the good increases.

• A) opportunity cost of producing; increases as production
• B) price that must be paid to consume; decreases as consumption
• C) opportunity cost of producing; decreases as production
• D) price that must be paid to consume; increases as consumption

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Definitions:

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and direct labor.

Excess Capacity

The situation where a company can produce more goods or services than currently demanded, indicating underutilization of resources.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Outlay Cost

Expenses directly associated with the production of goods or services, such as materials and labor.