Question

select the correct answer. what is marginal cost? a. it is the change in a company’s total output arising from a change in the total price of one unit. b. it is the change in a company’s total revenue arising from a change in total output of one unit. c. it is the change in a company’s total cost arising from a change in total output of one unit. d. it is the change in a company’s average revenue arising from a change in total output of one unit.

Explanation:

Marginal cost is defined as the additional cost incurred by a company to produce one more unit of output. It measures the change in total cost due to a one - unit change in total output.

Answer:

C. It is the change in a company’s total cost arising from a change in total output of one unit.