Which of the Following Statements Is Correct

question 352

Multiple Choice

Which of the following statements is correct?

• A)Average total cost is the difference between average variable cost and average fixed cost.
• B)Marginal cost measures the cost per unit of output associated with any level of production.
• C)When marginal product rises, marginal cost must also rise.
• D)Marginal cost is the price or cost of an extra variable input (for example, an additional worker or machine)divided by its marginal product.

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Definitions:

Price Discrimination

Price discrimination is the strategy of selling the same product at different prices to different groups of consumers, often based on their willingness to pay, location, or purchase volume.

Disguised Subsidy

Financial support given to industries or businesses in indirect ways, not easily identifiable as traditional subsidies, to lower their costs or increase their competitiveness.

Consumer Surplus

The gap between the total sum consumers are prepared and financially able to spend on a good or service and the sum they actually spend.

Legal

Pertaining to or conforming to the laws of a country or the legality of a situation or activity.