The Addition to a Business Firm's Total Costs That Comes

question 21

Multiple Choice

The addition to a business firm's total costs that comes from producing one more unit of output is:

• A)total variable cost.
• B)marginal cost.
• C)sunk cost.
• D)opportunity cost.
• E)total fixed cost

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Definitions:

Compounded Monthly

Interest is compounded monthly when it is calculated and added to the principal sum of an investment or loan each month.

Annual Interest Rate

The annual interest rate is the percentage increase in money that one earns or pays on an investment or loan over the span of one year.

Compounded Monthly

Refers to the process where interest is added to the principal balance of an investment or loan, and future interest calculations are made on the new total, on a monthly basis.

Annual Interest Rate

The percentage increase in money owed or invested over a year, accounting for the cost of borrowing or the gain on savings.