Marginal Cost Is the

question 4

Multiple Choice

Marginal cost is the

• A) rate of change in total fixed cost that results from producing one more unit of output.
• B) change in total cost that results from producing one more unit of output.
• C) change in average variable cost that results from producing one more unit of output.
• D) change in average total cost that results from producing one more unit of output.

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Definitions:

Polygons

Closed, two-dimensional shapes composed of straight lines, with a finite number of sides.

Profit Margin

A financial ratio representing the percentage of revenue that remains as profit after all expenses have been deducted.

ROA

Return on Assets; a financial ratio indicating the profitability of a company relative to its total assets.

Total Assets

The combined value of all owned resources that have economic value and can provide future benefits to the business.