Which of the Following Variables Do You Need to Know

question 215

Multiple Choice

Which of the following variables do you need to know to calculate marginal cost?
i.change in total cost
ii.marginal product of labor
iii.change in quantity of labor used
iv.change in output

• A) i and ii
• B) i and iv
• C) ii and iv
• D) i, iii, and iv
• E) Only ii

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Definitions:

Maintenance

The act of keeping an asset in good condition through regular check-ups and repairs to ensure its proper function and prolong its life.

Straight-Line Method

A method of calculating the depreciation of an asset, which allocates an equal amount of depreciation each year over its useful life.

Residual Value

The estimated amount that an asset is expected to realize upon its disposal at the end of its useful life.

Interest Incurred

The cost of borrowing money, often expressed as a rate, that accumulates over the loan period.