ECONOMICS
TECHNOLOGY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
cost of an activity that exceeds its benefit
|
|
|
cost that arises from an increase in an activity
|
|
|
cost that your activity imposes on someone else
|
|
|
cost that arises from the secondary effects of an activity
|
Detailed explanation-1: -Marginal cost is the increment in cost that occurs when the output produced is increased by one unit. More formally, it is the derivative of the total cost function with respect to output. Marginal costs are important because economic decisions are made at the margin.
Detailed explanation-2: -What Is Marginal Cost? In economics, the marginal cost is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
Detailed explanation-3: -Marginal cost is the increase in total cost from producing an additional unit of output. Hence, it is a cost that arises from an increase in an activity.
Detailed explanation-4: -The marginal cost of production is used to measure the change in the cost of a product resulting from the production of an extra unit of output. When the company reaches the optimum production level, producing additional units will increase the cost of production per unit.
Detailed explanation-5: -Marginal cost is the expense incurred by a business for producing an additional unit of a good or service. It is calculated by taking the total cost of producing additional products and dividing it by the total number of extra units produced.