Marginal cost equals: a) total cost divided by quantity of output produced. b) total output divided by the change in total cost. c) the slope of the total cost curve. d) the slope of the line drawn from the origin to the total cost curve.

A) Total cost divided by quantity of output produced.

Explanation:

Marginal cost is the change in total cost when an additional unit of a product is produced which means the cost of producing an extra unit. Marginal costs vary at production levels as well as the cost of each additional unit per production level. Costs which are fixed ate not marginal costs. The formula for marginal cost is the change in price divided by change in quantity produced. Marginal cost is the first derivative of the cost function C when it comes to quantity of output.

C. The slope of the total cost curve

Explanation:

Marginal cost can be defined as the cost incurred as a result of producing an extra unit of goods. Marginal cost equals the slope of the total cost curve.

Marginal cost can be calculated as the change in total cost divided by the change in output.

That is,

Marginal cost (MC) = change in total cost (TC) / change in output

MC=∆TC/∆output

Total cost (TC) : This is the total cost of producing a commodity. It is the addition of fixed cost (FC) and variable cost (VC).

That is,

Total cost (TC) = fixed cost (FC) + variable cost (VC)

Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries, furnitures etc.

Variable cost (VC) are cost that changes during production process such as labor cost, cost of raw materials.