Question

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of

purchasing a unit.
distributing that unit.
producing the next unit.
producing a different unit.

Answer 1

In order to calculate marginal cost, producers must compare the difference in the cost of producing one unit to the cost of **producing the next unit**.

Marginal cost refers to the additional cost incurred when producing one more unit of a good or service.