8
QuizMultiple Choice

Profit — Quiz

Question 8 • Personal Finance and Economics

What is the best definition of marginal cost?

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

Explanation

Marginal cost is the extra cost of producing one additional unit of a good. Choice A, “the price of producing one additional unit of a good,” gives this definition. The additional income from selling a unit is marginal revenue, not marginal cost.

AI-written and checked against the verified answer.

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