If C(X)represents the Total Cost of Activity X,then Which of the Following

question 9

Multiple Choice

If C(X) represents the total cost of activity X,then which of the following expressions best represents the marginal cost of activity X?

• A) C(X) - C(X - ∆X)
• B) (C(X) - C(X - ∆X))/∆X
• C) (C(X) - C(X - ∆X))/X
• D) C(X - ∆X))/∆X

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Definitions:

Consumption

The use of goods and services by households or individuals, typically measured to understand economic activity and consumer behavior.

Utility Function

A representation of a consumer's preferences, modelling satisfaction obtained from consuming goods and services.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Consumption

The use of goods and services by households, leading to a decrease in their quantity or quality.