Marginal Cost

question 440

Multiple Choice

Marginal cost

• A)equals both average variable cost and average total cost at their respective minimums.
• B)is the difference between total cost and total variable cost.
• C)rises for a time but then begins to decline when diminishing returns set in.
• D)declines continuously as output increases.

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Definitions:

Square Feet

A measurement of area used primarily in the United States, defined as the area of a square with sides of one foot in length.

Bouquets

An arrangement of flowers that are typically gathered at the stems and often used as gifts or decorations.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.

Square Feet

A measure of area in the imperial system, used to calculate the size of a space, equivalent to the area of a square with sides one foot in length.