If There Are No Fixed Costs and Variable Costs Are

question 79

Multiple Choice

If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output,what is marginal cost when 1 unit of output is produced?

• A)$0
• B)$0.50
• C)$1
• D)$2

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Definitions:

Present Value Interest Factors

Present value interest factors are used to calculate the present value of a future amount of money or stream of cash flows given a specific interest rate.

Lease Liability

A financial obligation representing the present value of future lease payments owed by a lessee under a lease agreement.

Implicit Lease Rate

The interest rate assumed in the lease payments, often used to calculate the present value of lease payments in lease agreements.

Guaranteed Residual Value

An assurance to lessees that the asset being leased will have a specified value at the end of the lease term, affecting lease payments and financial planning.