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    Question

    Which cost refers to the additional cost incurred by

    producing one additional unit of output?
    A Implicit costs Correct Answer Incorrect Answer
    B Marginal costs Correct Answer Incorrect Answer
    C Opportunity costs Correct Answer Incorrect Answer
    D Social costs Correct Answer Incorrect Answer

    Solution

    Marginal cost is calculated by dividing the change in total cost by the change in quantity, representing the additional cost per unit.

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