Which of the Following Is Least Likely to Be a Small

question 41

Multiple Choice

Which of the following is least likely to be a small business?

• A) A restaurant
• B) A construction company
• C) A mining company
• D) An auto repair shop

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Definitions:

Marginal Cost

The additional cost incurred in the production of one extra unit of a good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; these costs decline as production increases.

Marginal Cost

The financial cost of producing an extra unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced.