A Contest Requires the Use of a Skill While a Sweepstakes

question 112

True/False

A contest requires the use of a skill while a sweepstakes relies on random chance.

---

Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a good or service, a critical concept in economic decision-making and pricing strategies.

Average Variable Cost

The total variable cost divided by the quantity of output produced, indicating the cost of producing each additional unit.

Market Price

The current value at which an asset or service can be bought or sold in a particular marketplace.

Average Total Costs

This term refers to the total costs (fixed plus variable) of production divided by the total quantity of output produced.