4
QuizMultiple Choice

Comparative and Absolute Advantage

Question 4 • 2102320-Economics HONORS - Edgenuity Teacher

What is the best definition of marginal cost?

Answer
A
the possible income from producing an additional item
B
the price of producing one additional unit of a good
C
the additional income gained from selling an additional good
D
the financial gain from business activity minus expenses

Explanation

Marginal cost is the extra cost of producing one additional unit of a good. Therefore, the best definition is “the price of producing one additional unit of a good.” The additional income from selling another good is marginal revenue, not marginal cost.

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