Which of the Following Best Describe the Term Marginal Cost

question 92

Multiple Choice

Which of the following best describe the term marginal cost or incremental cost.

• A) Investigation of what happens to NPV when only one variable is changed.
• B) The determination of what happens to NPV estimates when we ask what-if questions.
• C) The degree to which a firm or project relies on fixed costs.
• D) The change in costs that occurs when there is a small change in output.
• E) Taking into account the managerial options that are implicit in a project.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Investment Account

An account held at a financial institution that is used to hold securities, cash, and other investments in the financial markets.

Significant Influence

The capacity of an investor to affect the financial or operating policies of an investee, typically through ownership of a significant but not majority share.