Marginal Cost Is Calculated by Dividing

question 65

Multiple Choice

Marginal cost is calculated by dividing

• A) the change in total cost by the change in the quantity of output produced.
• B) total output by the number of people employed.
• C) the change in total output by the change in the number of people employed.
• D) the change in total cost by the change in change in variable cost.
• E) total cost by total output.

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Definitions:

Rate of Return

The returns or setbacks realized from an investment over a certain time period, expressed as a percentage of the initial capital invested.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, factoring in all interest payments made over time.

Zero-coupon Bond

A bond that does not pay interest during its life and is sold at a discount from the face value, which is paid to the holder at maturity.

Forward Interest Rate

A rate that is deduced from current bond yields, representing the expected future interest rate between two periods.