A Basis Point Is Equal to

question 73

Multiple Choice

A basis point is equal to

• A) one percent.
• B) one-tenth of one percent.
• C) one-hundredth of one percent.
• D) one-half of one percent.

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Definitions:

Marginal Revenue

Marginal revenue is the additional revenue that a firm receives from selling one more unit of a good or service.

Average Total Cost

The total cost of production (fixed and variable) divided by the number of units produced, representing the per unit cost of production.

Marginal Cost

The cost of producing one more unit of a good or service.

Optimum Efficiency

The most favorable condition for the maximal performance and least waste of resources.