Marginal Cost Increases with Output Because

question 69

Multiple Choice

Marginal cost increases with output because

• A)capital becomes increasingly difficult to work with as more units of labor utilize it.
• B)marginal product increases with output.
• C)increasing amounts of input must be used to produce one more unit of output.
• D)total costs increase with output.
• E)more input must be used to produce more output.

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Definitions:

Sharpe Measure

A metric for calculating risk-adjusted return, measuring excess return per unit of deviation in an investment.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a gauge of the overall health of the US stock market.

Sharpe Measure

A metric used to assess the risk-adjusted return of an investment, comparing its excess returns to the volatility experienced.

Residual Standard Deviation

A statistical measure of the amount of variance in investment returns not explained by the beta in the Capital Asset Pricing Model (CAPM).