Marginal Factor Cost Is Computed as

question 17

Multiple Choice

Marginal factor cost is computed as

• A) total cost of the resource/total amount of the resource being used.
• B) change in the total cost of the resource/total amount of the resource being used.
• C) total cost of the resource/change in the amount of the resource being used.
• D) change in the total cost of the resource/change in the amount of the resource being used.

---

Definitions:

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, often used as a reference for other rates.

Loan Repayment

The process of paying back borrowed money, typically in installments over a set term.

T-Bill

Short-term government debt security with a maturity of less than one year.

Simple Interest

A method of calculating interest where it is applied only to the principal amount, not on the accumulated interest.