Question

the change in total cost that results from the production of one additional unit is called:
a. marginal cost.
b. average variable cost.
c. marginal revenue.
d. average total cost.

Explanation:

• Marginal cost is defined as the change in total cost from producing one extra unit.
• Average variable cost is total variable cost divided by quantity produced.
• Marginal revenue is the change in total revenue from selling one extra unit.
• Average total cost is total cost divided by quantity produced.

Only option a matches the given definition.

Answer:

a. marginal cost.