Multiple choice

Marginal cost is defined as

  1. the change in total cost due to a one unit change in output

  2. total cost divided by output

  3. the change in output due to a one unit change in an input

  4. total product divided by the quantity of input
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Marginal cost is the change in total cost from producing one additional unit of output (MC = ΔTC/ΔQ). Option A precisely defines this. Option B describes average total cost, not marginal. Option C describes marginal product (output change from input change), not cost. Option D describes average product, also incorrect for marginal cost.

Keep practicing — related questions