The Additional Cost Resulting from Producing and Selling One Additional

question 35

Multiple Choice

The additional cost resulting from producing and selling one additional unit is called the

• A) marginal cost.
• B) common cost.
• C) opportunity cost.
• D) markup.

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Definitions:

Second Mortgage

A loan taken out on a property that is already mortgaged, with the second loan being subordinate to the first.

Mortgage Rate

The interest rate charged by a lender for a loan used to purchase a property.

Average Cost

The total cost of production divided by the number of units produced, representing the cost per unit.

Shares

Units of ownership in a company or financial asset, giving shareholders a portion of the company's profits and voting rights.