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The cost of producing one additional unit of output is referred to as:
Question



The cost of producing one additional unit of output is referred to as:

A.

Marginal Cost

B.

Total Cost

C.

Average Cost

D.

Fixed Cost

Correct option is A


The correct answer is Marginal Cost.
Marginal Cost refers to the increase in total cost that arises from producing one additional unit of a product. It helps in decision-making regarding production levels by assessing the cost-effectiveness of increasing output.

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