Marginal cost of production refers to the change in total cost to produce ______ additional unit(s).

Question

Question

This question was previously asked in

RRB Group D 13 Sept 2022 Shift 2 Official Paper

Answer 1

The correct answer '1'.

Key Points

Marginal cost is defined as the cost to produce one additional unit of production.
It is an important topic in cost accounting because marginal cost helps us to determine the most efficient level of production for the manufacturing process. It can be calculated as the number of expenses incurred if only one additional unit is manufactured.
In economics, the marginal cost is defined as the change in total production cost when it serves from making or producing one additional unit.
To calculate marginal cost, We have to divide the change in production costs by the change in quantity.