A firm's variable costs are costs that increase as quantity produced increases. these costs often show diminishing marginal returns illustrated by the increasingly steeper slope of the total cost curve.
The marginal cost, or the price of producing more, is the adjustment to the overall cost in economics that results from increasing the quantity produced.
Costs that fluctuate according on the level of output are referred to as variable costs. As a result, variable costs will rise as production volumes rise.
The marginal cost is the right response (A). The difference in price that results from adding an extra unit to the quantity produced is known as the marginal cost. Therefore, it is the expense incurred when an additional unit is generated.
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