Marginal Cost

question 27

Multiple Choice

Marginal cost:

• A) is calculated as change in total cost divided by change in total output.
• B) is calculated as change in total output divided by change in total cost.
• C) increases then decreases, as output increases, to reflect marginal product.
• D) None of these is true.

---

Definitions:

Appreciates

An increase in the value of an asset or currency over time, often due to market demand or economic conditions.

Speculators

Individuals who attempt to profit from the buying and selling of assets, often predicting future price movements.

Arbitrageurs

Individuals or entities that attempt to profit from price differences of the same or similar financial instruments, on different markets or in different forms.

Capital Outflows

The movement of money for the purpose of investment, operations, or purchases away from a country or region.