A Firm's Marginal Cost Is

question 4

Multiple Choice

A firm's marginal cost is:

• A) the ratio of the change in total cost to the change in the quantity of output.
• B) the change in total cost divided by the change in labor input.
• C) the slope of the average fixed cost curve.
• D) all of the above.

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Definitions:

Credit Balances

Balances in financial accounts that signify amounts owed to others, which are common in liability accounts, equity accounts, and revenue accounts.

Capital Balances

The amount of money that owners have invested in a company minus any withdrawals they have made from the company.

Income Ratios

Financial metrics that compare various components of income to detect insights and trends within a company’s financial performance.

Equal Capital Interests

A situation where all partners or owners have the same stake in the capital of a business.