When a Firm Produces One Unit,the Variable Cost Is $3

question 47

Multiple Choice

When a firm produces one unit,the variable cost is $3.When the firm produces two units,the variable cost is $6.What is the marginal cost associated with two units of production?

• A) $2
• B) $0.5
• C) $6
• D) $3

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Definitions:

Matching Principle

An accounting concept that expenses should be recorded in the same period as the revenues they help to generate.