The change in total cost that comes from making or producing one additional item is called:

Correct option is B

Marginal cost refers to the change in total cost resulting from producing one additional unit of a good or service. It is a critical concept in economics for decision-making in production and pricing.

Information Booster:

1. Formula: Marginal Cost = Change in Total Cost ÷ Change in Quantity.
2. Helps businesses determine the optimal level of production.
3. It plays a role in profit maximization and cost control strategies.
4. A key concept in microeconomics and managerial decision-making.

Additional Knowledge:

• Total cost: The sum of fixed and variable costs for a given level of production.
• Production cost: Includes all costs incurred in manufacturing goods.
• Average cost: Total cost divided by the number of units produced.