What Is the Term for the Change in Total Cost

question 134

Multiple Choice

What is the term for the change in total cost that results from the production of one additional unit of output?

• A) marginal cost
• B) marginal revenue
• C) average total cost
• D) average variable cost

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Definitions:

Agent

An individual or entity authorized to act on behalf of another, often in a business or legal matter.

Principal-Agent

Refers to a relationship where one party (the principal) grants authority to another party (the agent) to act on their behalf in transactions or other matters.

Employer

An individual or entity that hires and pays people to perform specific jobs or services.

Independent Contractor

A person who is hired to perform a task for another but who is not the other’s employee.