Marginal cost is?

  • A the lowest cost of producing goods
  • B the cost of production of the most efficient firm in an industry
  • C the cost of production of the most inefficient firm in an industry
  • D the cost of production of the last or extra unit of goods produced by a firm
jamb 2022english-language

The correct answer is D. the cost of production of the last or extra unit of goods produced by a firm

Marginal cost is the cost incurred by a firm to produce one additional unit of a good or service.

It represents the change in total cost when the quantity of output is increased by one unit.

In other words, it measures the cost of producing an extra unit of output.

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