Examlex
One of the dangers of allocating common fixed costs to a product line is that such allocations can make the line appear less profitable than it really is.
Marginal Cost
The hike in overall cost that comes with the assembly of an extra unit of a product or service.
Elasticity
A measure in economics to show how much the quantity demanded or supplied of a good responds to a change in price or other factors.
Marginal Cost
The cost incurred by producing an additional unit of a product or service.
Elasticity
A measure of how much the quantity demanded or supplied of a good responds to a change in one of its determinants, such as its price.
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