Which of the Following Is the Solution to This Problem

question 1

Multiple Choice

Which of the following is the solution to this problem? 2/7 × 1/4 × 4 = ___.

• A) 7/28
• B) 2/7
• C) 2/112
• D) 16/32

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Definitions:

Perfect Mobility

A theoretical condition where factors of production, such as labor and capital, can be freely moved from one use to another without costs or barriers.

Marginal Revenue

The revenue increment achieved by selling an extra unit of a product or service.

Marginal Cost

The expense associated with manufacturing an additional unit of a product or service.

Average Total Cost

The sum of all production expenses (both constant and fluctuating) divided by the overall output quantity.