The Amount by Which Total Cost Rises When the Firm

question 59

Multiple Choice

The amount by which total cost rises when the firm produces one additional unit of output is called

• A)average cost.
• B)marginal cost.
• C)fixed cost.
• D)variable cost.

---

Definitions:

Endowment Fund

Financial assets donated to institutions or organizations with the stipulation that the funds are to be invested and the principal remains intact.

Restricted Fund

Denotes funds that are earmarked for a specific purpose by donors or grantors, limiting their use to certain activities or projects.

Investment Income

The money that an individual or entity earns from various investments, such as dividends, interest, or rental income.

Net Assets

The total assets of a company minus its total liabilities, representing the shareholders' equity in the company.