QUESTION IMAGE
Question
- a customer requests one additional item to be produced by a manufacturer. the manufacturer must calculate the ______ or additional costs to produce one extra unit.
options:
- marginal cost
- opportunity cost
- marginal revenue
- marginal benefit
Brief Explanations
Marginal cost is defined as the additional cost incurred to produce one extra unit of a good, which matches the description in the question. Opportunity cost is the value of the next best alternative foregone, marginal revenue is the additional revenue from selling one more unit, and marginal benefit is the additional gain from consuming one more unit.
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A. marginal cost