Marginal Cost Is Defined as the Increase in Total Cost

question 109

Multiple Choice

Marginal cost is defined as the increase in total cost resulting from an increase in:

• A)1 unit of output.
• B)output of 100 units.
• C)a firm's plant size.
• D)1 unit of labour.

---

Definitions:

Debt/Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, often used to assess financial leverage.

Cost of Debt

The cost of debt is the effective interest rate a company pays on its debts, including loans and bonds, accounting for tax benefits.

Equity Financed

Refers to raising capital for a company through the sale of shares in the company to investors.

Tax Rate

The portion of one's income or a company's earnings attributed to taxes.