Use the Following to Answer Question

question 157

Multiple Choice

Use the following to answer question:
-(Table: Marginal Cost of Sweatshirts) Use Table: Marginal Cost of Sweatshirts.The marginal cost of producing sweatshirts is an example of _____ marginal costs.

• A)decreasing
• B)increasing
• C)constant
• D)random

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Definitions:

Capacity Utilization Rate

A measure of how well a company or economy is using its productive capacity, expressed as a percentage of total potential output that is actually being realized.

Recessions

Periods of temporary economic decline during which trade and industrial activity are reduced.

Gross Investment

The total amount spent on new capital assets, before accounting for depreciation, indicating the level of investment in an economy's productive capacity.

Net Investment

The total a company invests in new capital assets, minus the cost of depreciation.