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Q: Marginal cost of production refers to the change in total cost to produce ______ additional unit(s).
  • A. 1
  • B. 2
  • C. 3
  • D. 4
Correct Answer: Option A - The marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. Calculating the marginal cost allows companies to see how volume output influences cost and hence, ultimately profits.
A. The marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. Calculating the marginal cost allows companies to see how volume output influences cost and hence, ultimately profits.

Explanations:

The marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity. Calculating the marginal cost allows companies to see how volume output influences cost and hence, ultimately profits.