Understanding Marginal Cost

What is the primary reason marginal cost is considered a fundamental concept in economics?

• It is essential for profit maximization.

• It helps in understanding consumer behavior.

• It determines the supply of goods.

• It is used to calculate taxes.

In the context of marginal cost, what are variable costs?

• Costs that are incurred only once.

• Costs that change with the level of output.

• Costs that are unrelated to production.

• Costs that remain constant regardless of output.

How do you calculate the change in cost when determining marginal cost?

• By subtracting the old cost from the new cost.

• By adding the old and new costs.

• By multiplying the old cost by the new cost.

• By dividing the new cost by the old cost.

What is the change in quantity in the burger restaurant example?

• 2 burgers

• 4 burgers

• 1 burger

• 3 burgers

What is the marginal cost per burger in the example provided?

• $2

• $4

• $1

• $3