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Marginal cost is the
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- cost of producing a unit of output
- cost of producing an extra unit of output
- cost of producing the total output
- cost of producing a given level of output
- cost of producing a unit of output
Correct Option: B
Marginal cost is the change in total cost that arises when the quantity produced changes by one unit. That is, it is the cost of producing one more unit of a good. In general terms, marginal cost at each level of production includes any additional costs required to produce the next unit.
