The addition to total cost by producing an additional unit of output by a firm is called _______.

variable cost

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average cost

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marginal cost

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opportunity cost

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Solution

The correct option is C marginal cost
The addition to total cost by producing an additional unit of output by a firm is called marginal cost. Average cost is the total cost of producing a given output divided by that output.

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Similar questions

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Q. A firm producing

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to its fixed factors of production whether it produces or not. How much of the average total cost is made up of variable costs?

A firm is operating with a Total Variable Cost of Rs 500 when 5 units of the given output are produced and the Total Fixed Costs are Rs 200, what will be the Average Total Cost of producing 5 units of output?
i) Rs 140 ii) Rs 100 iii) Rs 120 iv) Rs 300

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The addition to total cost by producing an additional unit of output by a firm is called _______.

The correct option is C marginal costThe addition to total cost by producing an additional unit of output by a firm is called marginal cost. Average cost is the total cost of producing a given output divided by that output.

The correct option is C marginal cost
The addition to total cost by producing an additional unit of output by a firm is called marginal cost. Average cost is the total cost of producing a given output divided by that output.