When Economists Use the Term "Marginal," They Usually Refer to

question 48

Multiple Choice

When economists use the term "marginal," they usually refer to

• A) average change.
• B) no changes.
• C) small, incremental change.
• D) large changes.

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Definitions:

Operating Divisions

Distinct units within a company, often based on products or markets, responsible for their own performance and strategy.

Variable Costs

Expenses that vary in direct proportion to changes in the level of an organization's activity or volume of output.

Fixed Costs

Expenses that do not change with the level of production or sales volume, such as rent, salaries, and insurance premiums.

Peak-period

A time of maximum activity or demand, often leading to higher prices and increased revenue for companies able to meet the demand.