When a Firm Produces One Unit,the Variable Cost Is $3

question 17

Multiple Choice

When a firm produces one unit,the variable cost is $3.When the firm produces two units,the variable cost is $6.What is the marginal cost associated with two units of production?

• A)$2
• B)5¢
• C)$6
• D)$3

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Definitions:

Unsecured Bond

A bond not backed by collateral, relying on the issuer's creditworthiness.

Indenture

A formal legal agreement, contract, or document between two parties, especially one detailing the terms and conditions of a bond or debenture.

Debenture

A type of debt instrument that is not secured by physical assets or collateral but is backed only by the general creditworthiness and reputation of the issuer.

Mortgage Bond

A bond secured by real estate.