Marginal Cost Is Equal to

question 83

Multiple Choice

Marginal cost is equal to

• A) output divided by total cost.
• B) the change in total cost divided by the change in output.
• C) total cost divided by output.
• D) the change in total cost divided by the change in total revenue.

---

Definitions:

Gross Margin

The difference between sales and the cost of goods sold, which measures the profitability of the products sold before other expenses are deducted.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Income From Operations

Earnings generated from a company's regular business activities, excluding revenues and expenses from non-operating activities.

Sales

The total revenue generated from goods or services sold by a company during a specific period, indicating the primary source of business income.