Deflating a Nominal Quantity Is the Process of Dividing a _______

question 67

Multiple Choice

Deflating a nominal quantity is the process of dividing a _______ quantity by a ______ in order to express the quantity in ______ terms.

• A) nominal;real quantity;nominal
• B) nominal;nominal quantity;real
• C) real;nominal quantity;real
• D) nominal;price index;real
• E) real;price index;nominal

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Definitions:

Marginal Cost

The price associated with the creation of one more unit of a product or service.

Average Total Cost

The per-unit cost of production, calculated by dividing the total cost of production by the quantity of output produced.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Short-run Marginal Cost Curve

A curve that shows the change in total cost associated with producing one more unit of output in the short term.