A Basis Point Is ________

question 36

Multiple Choice

A basis point is ________.

• A)one-thousandth of a percentage point
• B)one percentage point
• C)one-tenth of a percentage point
• D)one-hundredth of a percentage point

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Definitions:

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, representing the variable cost per unit of output.

Normal Rates

The standard or average prices, fees, or charges for goods, services, or financial transactions within a specific sector or economy.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Total Revenue

The overall income generated by a firm from its sales activities before any costs or expenses are subtracted.