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Question
Microeconomics
Posted 6 months ago

Which of the following best describes marginal cost?
Choose 1 answer:
(A) The costs that vary as output changes, per unit of output
(B) The cost of producing a typical unit of output
(C) The cost of producing one more unit of output
(D) The costs that do not vary as output changes, per unit of output
(E) The costs that do not vary as output changes
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Answer from Sia
Posted 6 months ago
Solution
a
Definition of Marginal Cost: Marginal cost (MC) is the additional cost incurred by producing one more unit of output
b
Correct Answer Identification: Among the given options, the correct answer is (C) "The cost of producing one more unit of output."
Answer
(C) The cost of producing one more unit of output
Key Concept
Marginal Cost
Explanation
Marginal cost is defined as the additional cost incurred when producing an additional unit of output. This is crucial for decision-making in production as it helps firms determine the optimal level of output.

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