The Marginal Cost of a Good Is

question 83

Multiple Choice

The marginal cost of a good is

• A)The change in total product associated with the change in resource inputs
• B)The average cost of the product
• C)The total cost of the good divided by output
• D)The change in total cost per unit change in output
• E)None of the above

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Definitions:

Accounts Receivable

Funds that customers are required to pay to a company for products or services that have been provided but not yet compensated for.

Net Credit Sales

The total revenue from sales made on credit after subtracting returns and allowances.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.

Inventory

Refers to the goods and materials a business holds for the purpose of resale or production.