5
QuizMultiple Choice

Profit — Quiz

Question 5 • Personal Finance and Economics

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

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