Marginal cost can be defined as the change in:

• A. average cost resulting from producing one additional unit of output
• B. total revenue resulting from selling one additional unit of output
• C. fixed cost resulting from producing one additional unit of output
• D. total cost resulting from producing one additional unit of output

Answer: (D)

Verified step by step guidance

1. Understand the definition of marginal cost: it is the additional cost incurred when producing one more unit of output.
2. Recall that total cost (TC) is the sum of fixed cost (FC) and variable cost (VC), and marginal cost relates to how total cost changes with output.
3. Express marginal cost mathematically as the change in total cost divided by the change in quantity produced: \(\text{MC} = \frac{\Delta TC}{\Delta Q}\).
4. Recognize that marginal cost does not relate to changes in average cost, total revenue, or fixed cost directly, but specifically to total cost.
5. Conclude that marginal cost measures the increase in total cost from producing one additional unit of output.