Question

Marginal cost is __________________.

• A. the change in cost following a managerial decision
• B. the change in output resulting from one dollar change in cost.
• C. the change in cost following a unit change in output
• D. the change in average cost following a one-unit change in output

Answer 1

Answer: (C)

the change in cost following a unit change in output

Marginal cost is defined as the change in total cost as the result of producing an additional unit of output.