Marginal Cost Is The

question 146

Multiple Choice

Marginal cost is the:

• A)increase in total cost when one more unit of output is produced.
• B)reduction in cost from economies of scale.
• C)ratio of average total cost to total cost.
• D)increase in output from the addition of one unit of labor.

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Definitions:

Functional Fixedness

A cognitive bias that limits a person's ability to use an object only in the way it is traditionally used, hindering creative problem-solving.

Mental Sets

A tendency to approach situations or problems in a particular way, often based on past experiences or learned procedures.

Problem Solving

The process of identifying a problem, generating possible solutions, and selecting the best course of action among them.

Spare Tyre

A colloquial term for an additional tyre carried in a vehicle for use in the case of a flat tyre or blowout.