Marginal Cost Is

question 66

Multiple Choice

Marginal cost is

• A)the total cost of producing one unit of a good or service.
• B)the average cost of producing a good or service.
• C)the difference between the lowest price a firm would have been willing to accept and the price it actually receives.
• D)the additional cost to a firm of producing one more unit of a good or service.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Discount Bond

A bond that is sold for less than its face value.

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate, representing its official worth or repayment value at maturity.

Yield-to-Maturity

The total return anticipated on a bond if it is held until its maturity date, incorporating both interest payments and the adjustment of the bond's value.