If a Consumer Can Buy Four DVDs for $44 and Five

question 142

Multiple Choice

If a consumer can buy four DVDs for $44 and five DVDs for $50,then the marginal cost of the fifth DVD is:

• A)$10.
• B)$50.
• C)$11.
• D)$6.

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Definitions:

Common Stock

An ownership share in a corporation, representing a claim on part of the company's profits and assets.

Market Price

The present cost at which a product or service is available for purchase or sale in a specific marketplace.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations from operating earnings, an indicator of financial stability.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing insights into its financial health.