What is the best definition of marginal cost?

E

the possible income from producing an additional item

the price of producing one additional unit of a good

the additional income gained from selling an additional good

the financial gain from business activity minus expenses

B. the price of producing one additional unit of a good

Explanation:

EDg

Answer: the price of producing one additional unit of good.

Explanation:

Marginal cost is the cost involved in production of one additional unit. Marginal cost can be found by dividing the change in cost by the change in quantity produced. Marginal cost is useful in determining the economies of scale of the firm. When economies of scale are identified by the company then the company can optimize its production.

The firm if it has planned to maximize the profits then it will produce till the marginal cost is equal to marginal revenue.