The Reason Marginal Cost Is Equal to the Change in Total

question 18

Multiple Choice

The reason marginal cost is equal to the change in total cost divided by the change in output,or the change in total variable cost divided by the change in output,is because

• A) total variable cost rises as output rises.
• B) of the law of diminishing marginal returns.
• C) total fixed cost does not change as output changes.
• D) total cost does not change as output changes.
• E) none of the above

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Definitions:

Simple Interest

The interest calculated only on the principal amount, without the accumulation of prior interest.

Simple Interest

Interest figured only on the principal balance, or on the portion of the principal balance that is still due.

Closing Balance

The amount of money in an account at the end of a period, after all transactions have been accounted for.

Bank Account

A financial account maintained by a bank or another financial institution in which the deposits, withdrawals, and balances of a customer are recorded.