Marginal Cost Is Total Variable Cost Divided by Output

question 30

True/False

Marginal cost is total variable cost divided by output.

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Definitions:

Total Assets

The sum of all resources owned by a company, including cash, investments, property, and other assets, reflected on the balance sheet.

Cash Ratio

A liquidity ratio that measures a company's ability to pay off short-term liabilities with cash and cash equivalents alone, without selling or liquidating other assets.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.