Question

Marginal costs: are minor, insignificant costs.

A) are associated with each additional unit produced.
B) are the costs incurred as a result of choosing one option over another.
C) are constant and do not vary according to production volume.
D) are also known as overhead.

Answer 1

Answer: A - are associated with each additional unit produced

Explanation:

Marginal cost is the change in the total cost as a result of increasing quantity produced by one unit.

Opportunity cost is the cost that arises from choosing one option over other options.

Fixed cost is cost that does not vary with production.

Overhead costs are expenses related to the running of a business that can't be associated with the creation of a good or service.