If Information About the Total Cost Is Not Given for Every

question 50

Multiple Choice

If information about the total cost is not given for every possible 1 unit change in quantity,marginal cost can still be computed as

• A) the price of labor divided by the quantity of labor.
• B) the price of labor divided by the marginal product of labor.
• C) fixed cost divided by the marginal product of labor.
• D) variable cost divided by the marginal product of labor.

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Definitions:

Net Operating Income

Income before interest and income taxes have been deducted.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including labor and materials.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of the business.

Debt-to-Equity Ratio

A financial metric that shows the comparative amount of debt and shareholders' equity utilized to fund a company's assets.