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Efficient Scale of the Firm

cost the net ...

Question

__________ cost the net addition made to total cost by producing one more unit of output.

A

Marginal

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B

Average

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C

Total

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D

Fixed

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Solution

The correct option is A Marginal
Marginal cost is the net addition made to total cost by producing one or more unit of output. Marginal means over and above the total by additional quantity. Marginal cost is cost per unit which varies with output.

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