Marginal Cost Is

question 57

Multiple Choice

Marginal cost is

• A)the increase in total cost from producing one more unit of output
• B)total variable cost per unit of output
• C)fixed cost per marginal unit
• D)average total cost divided by the quantity of inputs used
• E)total cost per unit of output

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Definitions:

Principal

The original sum of money borrowed in a loan or invested, excluding any interest or dividends.

Business Activity

Business activity involves actions taken by companies or entrepreneurs to produce, sell, or trade goods and services to generate profit.

General Rule

A widely accepted standard or procedure that is typically followed in a particular field or situation.

Agent

An individual or entity authorized to act on behalf of another, often in business transactions, creating an agency relationship.