Question:medium

The change in total cost per unit of change in output is known as ............

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MC is always about “extra cost for one more unit.” Use the slope of the Total Cost curve to calculate MC.
Updated On: Apr 2, 2026
  • Average Cost
  • Variable Cost
  • Fixed Cost
  • Short Run Marginal Cost
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The Correct Option is D

Solution and Explanation

Step 1: Recall the concept.
Marginal cost (MC) is the increase in total cost from producing one additional unit. \[ MC = \frac{\Delta TC}{\Delta Q} \] Step 2: Evaluate options.
- (A) Average cost is total cost divided by quantity, not the change.
- (B) Variable cost is the cost of variable inputs, not the change per unit.
- (C) Fixed cost is constant regardless of output.
- (D) Short run marginal cost matches the correct definition, \(\Delta TC / \Delta Q\).
Final Answer: \[ \boxed{\text{Short Run Marginal Cost}} \]
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