Question

explain the concept of marginal cost. how does it relate to cost? how is it found?

how does the marginal cost relate to cost?
a. marginal cost refers to the rate of change of cost.
b. cost refers to the rate of change of marginal cost.
c. marginal cost is the same as cost.

Explanation:

Marginal cost describes how total cost changes when production volume increases by one unit, meaning it is the rate of change of the total cost function. Option B reverses this relationship, and option C incorrectly equates the two distinct concepts.

Answer:

A. Marginal cost refers to the rate of change of cost.