In the context of marginal analysis, curve 2 represents marginal ______.

• A. cost
• B. product
• C. utility
• D. revenue

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of marginal analysis, which involves examining the additional or incremental changes resulting from a decision or action.
2. Step 2: Recognize that in microeconomics, marginal cost refers to the additional cost incurred from producing one more unit of a good or service.
3. Step 3: Identify the common types of marginal curves: marginal cost, marginal product, marginal utility, and marginal revenue, each representing the change in cost, output, satisfaction, or revenue respectively.
4. Step 4: Analyze the context or label of curve 2 in the problem, which is typically associated with the additional cost of production when producing one more unit.
5. Step 5: Conclude that curve 2 represents marginal cost because it aligns with the concept of the additional cost incurred from producing an extra unit.