The Difference Between the Price and Marginal Cost Is a Measure

question 31

Multiple Choice

The difference between the price and marginal cost is a measure of a firm's _____.

• A) labour productivity
• B) efficiency in production
• C) monopoly power
• D) capital usage

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Definitions:

Operating Cash Flow

The cash generated from a company's normal business operations, indicating its ability to generate positive cash flow.

CCA Class

A classification system used in Canadian tax law for capital cost allowance, determining the depreciation rate for tax purposes of tangible capital assets.

Marginal Tax Rate

The rate at which an additional dollar of income would be taxed, reflecting the rate applied to the last dollar earned.

CCA Tax Shield

A deduction that allows Canadian businesses to reduce taxable income based on the depreciation of tangible property.