Use the Above Table and Assume a Fixed Cost of

question 34

Multiple Choice

$$\begin{array} { c c c c c c c } & \text { Variable } & \text { Total } & & & & \text { Marginal } \\\text { Output } & \text { Cost } & \text { Cost } & \text { AFC } & \text { AVC } & \text { ATC } & \text { Cost } \\1 & 400 & & & & & \\2 & 700 & & & & & \\3 & 1,000 & & & & & \\4 & 1,400 & & & & &\end{array}$$ Use the above table and assume a fixed cost of $1000.
-At an output of 1,marginal cost is

• A)0.
• B)$200.
• C)$300.
• D)$400.

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Definitions:

Probability of Default

An estimate of the likelihood that a borrower will be unable to meet debt obligations as specified in the terms of the loan, typically expressed as a percentage.

Indebtedness

The state of owing money or being obliged to repay a monetary loan.

One-Time Customer

A consumer who purchases goods or services from a business only once.

Variable Cost

Costs that vary directly with the level of production or with the volume of services provided.