Marginal Cost Is Defined as the Increase in Total Cost

question 121

Multiple Choice

Marginal cost is defined as the increase in total cost resulting from an increase in

• A) one unit of output.
• B) output of 100 units.
• C) a firm's plant size.
• D) one unit of labor.

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Definitions:

Workers Hired

The number of individuals employed by a company or organization for the purpose of performing specific jobs.

Product Market

A platform where end products or services are made available to individuals, businesses, and governmental agencies.

Monopsonist

A market condition where there is only one buyer facing many sellers, often leading to lower prices for suppliers.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, holding all other factors constant.