At the Minimum or the Maximum of the Graph of a Non-Linear

question 126

Multiple Choice

At the minimum or the maximum of the graph of a non-linear function (with x on the horizontal axis and y on the vertical axis) the marginal response of y to a small change in x is

• A)1.
• B)-1.
• C)0.
• D)infinite.
• E)undefined.

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Definitions:

Net Investment

The total amount spent on new capital assets, minus depreciation, indicating the actual increase in physical capital.

Incremental Basis

An approach that evaluates the additional benefits and costs of a decision by comparing the financial outcomes with or without the decision.

Pretax Basis

Financial calculations or comparisons made before deducting income tax expenses, providing a raw snapshot of performance or position.

Direct Effects

Immediate impacts or outcomes resulting from a specific action or event.