The ________ Budget Is Thought of as a "Budget of Budgets

question 78

Multiple Choice

The ________ budget is thought of as a "budget of budgets."

• A)capital
• B)cost
• C)master
• D)production
• E)sales

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Definitions:

Marginal Cost

The increase in expenditure resulting from the production of an additional unit of a good or service.

Short-run Cost Function

The relationship between the cost of production and the level of output when at least one input is fixed in the short term.

Long-run Cost Function

A relationship that shows the lowest possible cost at which a firm can produce any given level of output when all inputs, including capital, are variable.

Cost-output Elasticity

A measure of how responsive the cost of production is to a change in the output level.