Which Statement Is True

question 70

Multiple Choice

Which statement is true?

• A)The recessions of 2001 and 2007-2009 were both mild.
• B)The recessions of 2001 and 2007-2009 were both severe.
• C)The recession of 2007-2009 was mild;the recession of 2001 was severe.
• D)The recession of 2001 was mild;the recession of 2007-2009 was severe.

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Definitions:

Marginal Cost

Marginal cost is the cost of producing one additional unit of a product or service, a crucial concept in economics for determining optimal production levels and pricing strategies.

Marginal Revenue

The surplus earnings acquired through the sale of an extra product or service unit.

Increasing Output

The process of raising the quantity of goods or services produced by a company or economy, often aiming for higher efficiency and profitability.

Marginal Analysis

The examination of the additional benefits of an activity compared to the additional costs incurred by that same activity.