A Firm's Marginal Cost Is

question 219

Multiple Choice

A firm's marginal cost is:

• A) the ratio of the change in fixed cost to the change in the quantity of output.
• B) the slope of the total cost curve.
• C) the slope of the average variable cost curve.
• D) the ratio of the change in total output to the change in the quantity of labor.

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Definitions:

Budgeted Costs

The estimated financial expenditure allocated for specific purposes during a predetermined timeframe.

Net Profit

The amount of money that remains from revenues after all operating expenses, taxes, and costs have been subtracted.

Compensation System

A structured approach to providing financial and non-financial rewards to employees, aimed at attracting, maintaining, and motivating a skilled workforce.

Satisfaction

The feeling of pleasure or contentment resulting from achieving what one wants or needs.