Marginal Cost Can Be Defined as the

question 135

Multiple Choice

Marginal cost can be defined as the

• A)change in total fixed cost resulting from one more unit of production.
• B)change in total cost resulting from one more unit of production.
• C)change in average total cost resulting from one more unit of production.
• D)change in average variable cost resulting from one more unit of production.

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Definitions:

Additional Cost

Expenses incurred that are over and above the originally planned or estimated costs.

Selling Price

The amount at which a product or service is offered to customers for purchase.

Opportunity Cost

The benefit that is missed or given up when choosing one alternative over another.

Cash Outlay

The total amount of money spent on a particular purchase or investment.