What Is the Definition of the Marginal Cost of a Good

question 96

Multiple Choice

What is the definition of the marginal cost of a good?

• A) It is decreasing whenever average total cost is decreasing.
• B) It is the addition to total cost from producing one more unit of output.
• C) It is always equal to average variable cost when the firm is maximizing profit.
• D) It is the difference between average total cost and average variable cost.

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Definitions:

Insurance Company

A financial institution that provides coverage against certain risks in exchange for premium payments.

Patient Liability

The portion of healthcare costs that a patient is personally responsible for, including copayments, deductibles, and any services not covered by insurance.

Paid

Receiving money or compensation in exchange for services rendered or as an employee.

Medicaid Patients

Individuals receiving health care coverage through the Medicaid program, a joint federal and state program that helps with medical costs for some people with limited income and resources.