Marginal Cost Is Equal to the

question 43

Multiple Choice

Marginal cost is equal to the

• A)change in total cost divided by the change in output.
• B)change in average total costs divided by the change in output.
• C)change in total product divided by the change in output.
• D)change in average product divided by the change in output.

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Definitions:

Present Value

The contemporary financial worth of a future sum or ongoing cash flows, evaluated at a designated rate of return.

Compounded Annually

A method of calculating interest where the interest earned each year is added to the principal, and the interest for the next year is calculated on the total amount.

Unamortized Discount

The portion of a bond discount that has not yet been charged to expense because the bond has not reached its maturity.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.