5 Questions
What is the definition of marginal cost in economics?
The change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional quantity.
How is marginal cost measured?
In dollars per unit.
What does marginal cost represent in terms of total cost?
The slope of the total cost, the rate at which it increases with output.
How is marginal cost different from average cost?
Marginal cost includes all costs that vary with the level of production, whereas average cost is the total cost divided by the number of units produced.
What costs does marginal cost include?
All costs that vary with the level of production.
Test your knowledge of marginal cost in economics with this quiz. Explore the concept of marginal cost and its role in determining the cost of producing additional units of output. Analyze different scenarios and understand how marginal cost is calculated.
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