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JAMB Economics 1978 Question 26

Question 26

Theory of Costs and Revenue

Marginal cost is

  1. A.the lowest cost of producing goods
  2. B.the cost of production of the most efficient firm in an industry
  3. C.the cost of production of the most inefficient firm in an industry
  4. D.the cost of production of the last or extra unit of goods produced by a firm
  5. E.the cost of production at which the minimum profit is obtained by a firm.
Show the answer and explanation

Answer: D (the cost of production of the last or extra unit of goods produced by a firm)

Explanation

Marginal cost is the addition to total cost from producing one more unit of output.