Marginal Cost Is Defined as the

question 28

Multiple Choice

Marginal cost is defined as the

• A) cost of an additional unit of a variable factor of production.
• B) change in fixed cost resulting from an additional unit of output.
• C) cost per unit when the firm is operating at capacity.
• D) difference between average total cost and average variable cost.
• E) change in total cost resulting from an additional unit of output.

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Definitions:

Cost Recovery Deduction

A tax deduction that allows taxpayers to recover the cost of an investment over time through depreciation.

Sole Proprietors

Individuals who own and operate their businesses alone, without forming a corporation or partnership.

Self-Employment Tax

Self-Employment Tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves.

Self-Employment Income

Earnings derived from one's own business, professional practice, or freelance work, subject to tax and self-employment contributions.