The Total Cost (TC) of Producing Computer Software Diskettes (Q)

question 130

Multiple Choice

The total cost (TC) of producing computer software diskettes (Q) is given as: What is the marginal cost?

• A) 200
• B) 5Q
• C) 5
• D) 5 + (200/
• E) none of the above

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Definitions:

Accounting Costs

Costs that appear on the financial statements of a company.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to optimize benefits.

Sunk Cost

A cost that has already been incurred and cannot be recovered. It should not impact future business decisions because it cannot be changed.

Depreciation

The reduction in the value of an asset over time, particularly regarding tangible assets like machinery and vehicles.