5
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Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

Answer
A
distributing that unit.
B
producing the next unit.
C
purchasing a unit.
D
producing a different unit.

Explanation

Marginal cost is the additional cost of producing one more unit. To calculate it, producers compare the cost of producing one unit with the cost of producing the next unit. Therefore, the correct choice is producing the next unit.

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