Marginal cost is best defined as

A) a cost that does not vary with the rate of output.
B) the difference between fixed and variable cost at any level of output.
C) the amount added to total cost when one more unit of output is produced.
D) the difference between price and average total cost at the profit-maximizing level of output.

Marginal Cost

The cost of producing one additional unit of a good or service, a critical concept for understanding economic decision-making and pricing strategies.

Total Cost

The complete cost of production, combining both fixed and variable costs incurred by a business in producing a good or service.

Output

The overall production of goods or services by an organization, industry, or economic body.