Marginal Cost Is

question 104

Multiple Choice

Marginal cost is:

• A)the additional output a firm will get by employing one additional unit of input.
• B)the additional cost a firm will incur by producing one additional unit of output.
• C)the total cost a firm will incur by producing a given level of output.
• D)the costs that sit on the margin, that do not change regardless of the level of output.

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Definitions:

Mutual Funds

Investment funds that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental.

Stock Securities

Shares that represent ownership or equity in a corporation, providing voting rights and a portion of dividends.

Face Value

Amount of principal due at the maturity date of the bond.