Marginal Cost Is the Change in Total Cost That Results

question 186

Multiple Choice

Marginal cost is the change in total cost that results from

• A) reducing the total number of units produced.
• B) increasing the number of units produced by 1 percent.
• C) increasing the number of products in a product line.
• D) producing and marketing one additional unit of a product.
• E) the percentage change that results from changing a product feature or service benefit to reduce costs.

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Definitions:

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The ability to solve everyday problems through the application of knowledge acquired from experience.

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Part of Sternberg’s Triarchic Theory of Intelligence, focusing on the ability to analyze, evaluate, judge, compare, and contrast.

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The aspect of intelligence that involves the capacity to be flexible, innovative, and inventive in thinking.

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