An Event for Which an Appropriate Monetary Measure Can Be

question 35

Multiple Choice

An event for which an appropriate monetary measure can be derived is considered to be

• A)objectively measured.
• B)economically viable.
• C)relevant.
• D)capitalized.

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Definitions:

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding all other inputs constant.

Diminishing Returns

The decrease in the marginal (incremental) output of a production process as the amount of a single factor of production is incrementally increased, while other factors are kept constant.

Average Cost

The total cost of production divided by the number of goods produced.

Marginal Cost

Marginal cost is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.