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16-11-2020
Business

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If a firm wanted to know how much it would save by producing one less unit of output, it would look to:__________. 1. AVC. 2. AFC. 3. MC. 4. ATC.

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andromache andromache

18-11-2020

Answer:

3. MC

Explanation:

The marginal cost is the extra cost that is incurred apart from the total cost to generate one more extra unit of the product i.e. produced

It can be computed by applying the following formula

Marginal cost is

= Change in the total cost ÷ change in output

So as per the given options, the option 3 is correct

hence, the right option is c. MC

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