Total Cost Can Be Divided into Two Types of Costs

question 336

Multiple Choice

Total cost can be divided into two types of costs:

• A)fixed costs and variable costs.
• B)fixed costs and marginal costs.
• C)variable costs and marginal costs.
• D)average costs and marginal costs.

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Definitions:

Soft Drinks

Non-alcoholic beverages that are usually carbonated and contain various flavorings and sweeteners.

Chips

Thin slices of potatoes, vegetables, or other foods, fried or baked until crispy, commonly served as a snack or side dish.

Equal Marginal Principle

The principle stating that optimal allocation occurs when the marginal benefits from allocation of resources to different uses are equalized.

MRS

An abbreviation for Marginal Rate of Substitution, which is the rate at which a consumer is willing to exchange quantities of one good for another while maintaining the same level of utility.