The Change in Cost Resulting from Producing One Additional Unit

question 40

Multiple Choice

The change in cost resulting from producing one additional unit of output is

• A)average total cost
• B)total variable cost
• C)average variable cost
• D)marginal cost
• E)total cost

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Definitions:

Taxable Income

The amount of an individual's or entity's income used to determine how much tax is owed, calculated as gross income minus deductions and exemptions.

Monthly Salary

The amount of money an employee is paid each month for their job performance, not including bonuses or overtime pay.

Net Pay

The amount of an employee's earnings after all deductions, such as taxes and retirement contributions, have been removed.

FICA Tax

The Federal Insurance Contributions Act (FICA) tax is a payroll tax in the United States that is required from both employers and employees to support Social Security and Medicare programs.