Question

Fill in the blanks.

A company charges $5 for its product. This monetary amount represents the_____of making an extra unit of the product.

1)marginal cost
2)benefit maximization
3)marginal benefit

Answer 1

Marginal cost is defined as "the cost added by producing one extra item of a product," according to dictionaries. Having that in mind, the correct answer is 1) marginal cost.
A company charges $5 for its product. This monetary amount represents the marginal cost of making an extra unit of the product.