Choose which interpretation of the marginal cost of producti

Choose which interpretation of the marginal cost of production is correct if the marginal cost of production is $30.

a. For every unit of production it will cost $30 to produce that unit.

b. An additional unit of production will require $30 worth of resources.

c. For every unit of production generated, the firm will receive $30.

d. The next unit of output will produce $30 for the firm.

Solution

b) an additional unit of production will require $30 worth of resources, $30 is the additional cost added for producing the last unit