Final answer:
A person's marginal cost refers to the cost of producing one more unit of a good or service, not to the utility or satisfaction derived from consumption. It's a key factor in marginal analysis and understanding the law of diminishing returns.
Step-by-step explanation:
According to economists, the definition of a person's marginal cost is not directly related to utility or satisfaction. Instead, marginal cost refers to the cost of producing one more unit of a good or service. Therefore, none of the options A, B, C, or D accurately define marginal cost. The correct definition would be related to the cost incurred in the production or provision of an additional unit of output. This concept is crucial in the marginal analysis by firms to determine the optimal level of production and in understanding the law of diminishing returns.
The law of diminishing returns states that as additional increments of resources are dedicated to a certain purpose, the marginal benefit derived from those additional increments tends to decrease. On the other hand, the law of diminishing marginal utility relates to the satisfaction or utility gained from consuming additional units of a good or service, which decreases as one consumes more. These concepts are interrelated but distinct from the idea of marginal cost.