The Additional Cost Resulting from a Small Increase in Some

question 98

Multiple Choice

The additional cost resulting from a small increase in some activity is called the:

• A) marginal cost.
• B) opportunity cost.
• C) marginal benefit.
• D) diminishing returns of the activity.

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Definitions:

Positive Profits

Financial gains that are greater than zero, indicating a company's revenues exceed its costs and expenses.

Variable Costs

Costs that change in proportion to the activity or volume of business, such as materials and labor.

Total Costs

The complete cost of production of goods or services, which includes both fixed and variable costs.

Revenues

The total income generated by a company from its business activities, typically from the sale of goods and services before any expenses are deducted.