Which of the Following Correctly Defines Marginal Cost

question 28

Multiple Choice

Which of the following correctly defines marginal cost?

• A) Marginal cost is the addition made to fixed cost when an extra unit is produced.
• B) Marginal cost is the additional cost of producing an extra unit of output.
• C) Marginal cost is the additional cost of increasing the scale of production in the long run.
• D) Marginal cost is the difference between price and marginal revenue for the last unit sold.
• E) Marginal cost is the same as the firm's variable cost at all levels of output.

---

Definitions:

Slot Machine

A gambling machine that creates a game of chance for its customers, often found in casinos.

Prostitution

The practice or occupation of engaging in sexual activity for payment.

Post Hoc

Short for "post hoc ergo propter hoc," a logical fallacy suggesting that because one event followed another, the first event caused the second.

Fallacy

An error in reasoning that renders an argument invalid or unsound but may appear superficially plausible.