PRC-3 · Chapter 12 · Question 44 of 69
A student buys a festival ticket online for Rs. 100. Upon arriving, he discovers parking costs an additional Rs. 10. In economic firm theory, this extra Rs. 10 incurred is an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Marginal cost
Explanation
Marginal cost represents the extra, incremental cost incurred from taking one additional action or producing one additional unit.
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