The Marginal Cost Is the Change In

question 8

Multiple Choice

The marginal cost is the change in:

• A) average variable cost as the quantity changes by two units.
• B) total cost as the quantity changes by a number of units.
• C) total variable cost as the quantity changes by one unit.
• D) total fixed cost as the quantity changes by one unit.

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Definitions:

Total Product

The total output or quantity of goods produced by a firm or economy at a given level of input.

Diminishing Returns

A principle stating that if one factor of production is increased while other factors are held constant, the incremental increases in output will eventually decrease.

Labor

The human effort, physical or mental, used in the production of goods and services.

Marginal Product

Marginal Product is the additional output resulting from the use of one more unit of a production input, holding all other inputs constant.