The Addition to Total Variable Cost When One More Unit

question 14

Multiple Choice

The addition to total variable cost when one more unit of output is produced is

• A)average variable cost.
• B)average fixed cost.
• C)total cost.
• D)fixed cost.
• E)marginal cost.

---

Definitions:

Price of X

The cost associated with acquiring a unit of good or service X.

Utility Function

An economic model that measures preferences over a set of goods and services.

Budget Constraint

An economic model that represents all the combinations of goods and services a consumer can purchase given their income and the prices of those goods and services.

Bundle

A collection of goods or services that are sold together.