If a Firm Wishes to Determine Its Marginal Cost, It

question 24

Multiple Choice

If a firm wishes to determine its marginal cost, it must need to know its:

• A) fixed cost
• B) fixed cost and variable cost
• C) fixed cost and variable cost and average revenue
• D) variable cost

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Definitions:

Productivity Gains

Improvements in output or efficiency, allowing more to be accomplished with the same or fewer resources.

Profit-Sharing Plan

A company program that offers employees a share in the profits of the business, typically as a form of incentive or bonus.

Merit Pay Plan

A compensation strategy where employees are paid based on their performance or achievements, often intended to motivate and reward excellence.

Gain-Sharing Plan

A compensation strategy where employees receive financial benefits from improvements in the company's performance, encouraging productivity and team effort.