Question

With which of the following is the concept of marginal cost closely related to?

• A. economic cost
• B. opportunity cost
• C. fixed cost
• D. variable cost

Answer 1

The correct option is D variable cost

The marginal cost is the cost of producing one extra unit of output, in the short runt the fixed cost does not change by producing one extra unit thus the marginal cost is entirely comprised of the variable cost.