Marginal Cost Refers to

question 28

Multiple Choice

Marginal cost refers to

• A)the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
• B)the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
• C)the total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost.
• D)the average amount of money received for selling one unit of a product or simply the price of that unit.
• E)the change in total cost that results from producing and marketing one additional unit of product.

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Definitions:

Deontological Approach

A theory in ethics that determines morality based on adherence to rules or duties, rather than the outcomes of actions.

Ethical Fundamentalism

The belief in absolute moral rules that apply universally, guiding actions and decision-making.

Utilitarianism

A philosophical theory that suggests the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Ethical Relativism

The philosophical view that moral standards, values, and judgments are not universal but are culturally and individually determined.