Marginal Cost Is Equal to

question 336

Multiple Choice

Marginal cost is equal to

• A) change in total cost divided by change in output.
• B) change in total variable cost divided by change in output.
• C) total variable cost divided by quantity of output.
• D) Both A and B are correct.

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Definitions:

Cost Focus

A business strategy that aims to become the lowest-cost producer in an industry or market segment to gain a competitive advantage.

Market Segments

Market Segments are distinct groups of consumers within a broader market who share similar characteristics and needs.

Differentiation Focus

A strategy where a company targets a specific market segment with a unique product or service offering to stand out from competitors.

Market Segments

Separation of a market into unique segments of consumers with diverse needs, traits, or actions who may need distinct products or marketing strategies.