Which of the Following Is a Definition of 'Components

question 27

Multiple Choice

Which of the following is a definition of 'components'? 

• A) Components are manufactured goods which will not undergo additional physical changes, but which will be incorporated into a system with which there is a functional relationship by joining it with other components. 
• B) Components are finished goods which will not undergo additional physical changes before being purchased by consumers 
• C) Components are manufactured goods which will undergo additional physical changes and which will be incorporated into a system. 
• D) Components are finished goods which will undergo additional physical changes and will be incorporated into a system with which there is a functional relationship by joining it with other components.

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Definitions:

Marginal Cost

The added expense incurred from producing an additional unit of a good or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total amount of output produced, indicating the cost per unit of output.

Marginal Cost

The production cost for one more unit of a product.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good varies.