Costs That Result from a Small Change in Output Are

question 285

Multiple Choice

Costs that result from a small change in output are called ___________.

• A) Fixed costs.
• B) Marginal costs.
• C) Average costs.
• D) Incremental costs.
• E) Product costs.

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Definitions:

Consumption

The use of goods and services by households or individuals, constituting one of the key concepts in economics.

Labor Income

Earnings derived from work or employment, including wages, salaries, commissions, and any other income earned as compensation for labor services.

Lump Sum Payment

A one-time payment for the total amount due, rather than breaking it down into multiple payments over time.

Leisure

The time individuals spend away from work or productive activities, often used for relaxation or recreational activities.