Marginal Cost Is Equal to The

question 54

Multiple Choice

Marginal cost is equal to the:

• A) change in total variable cost divided by the change in output.
• B) total variable cost divided by the level of output.
• C) price of the input divided by the average product of the variable input.
• D) price of the input divided by the total product of the variable input.
• E) total variable cost divided by the change in output levels.

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Definitions:

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, typically determined by a central bank.

Total Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.

Money Supply

The overall accumulation of monetary assets in an economy at a certain point, including cash, coins, and funds in checking and savings accounts.

Reserves

Assets held by a financial institution or an individual as a buffer for potential future liabilities or emergencies.