The Measurement of Responsiveness Between Two Variables Is Known as

question 27

Multiple Choice

The measurement of responsiveness between two variables is known as

• A)Marginality
• B)Elasticity
• C)Demand
• D)Total Revenue

---

Definitions:

Explicit Costs

Direct, out-of-pocket expenses incurred in conducting a business activity, such as wages, rent, and materials.

Economic Profits

Profits earned by a company after accounting for both explicit (direct) and implicit (opportunity) costs.

Marginal-Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit and the total quantity of the product produced.

Law of Diminishing

A principle stating that as more units of a variable input are added to fixed inputs, the additional output from each new unit of input eventually decreases.