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.

---

Definitions:

Paid-In Capital

Total amount of cash and other assets paid into the corporation by stockholders in exchange for capital stock.

Stock Dividend

A company rewards its shareholders with extra shares, foregoing the option to distribute cash.

Depreciation Expense

Allocating the price of a tangible asset consistently throughout its expected lifespan.

Prior Period Adjustment

An amendment to the financial statements, correcting errors from previously reported periods or adjustments due to changes in accounting policies.