Question

The addition or increment to the total cost involved in expanding or contracting output by one unit is called ___________.

• A. fixed cost per unit
• B. variable cost per unit
• C. total cost per unit
• D. marginal cost

Answer 1

The correct option is D marginal cost

MC is the change in total cost due to change in the output. It can be calculated as:
$MC=\frac{\Delta \text{Total Cost}}{\Delta \text{Quantity Produced}}$
$MC=\frac{\Delta \text{Total Variable Cost}}{\Delta \text{Quantity Produced}}.$