Choose the Word or Phrase in [ ] Which Will

question 119

Multiple Choice

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with a cashiers or [travelers | certified] check.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

---

Definitions:

Marginal Cost

The expenditure related to manufacturing one more unit of a product or service.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing how fixed costs change with output levels.

Average Variable Cost

The total variable cost divided by the number of units produced, reflecting the variable cost of producing each additional unit.

Total Variable Cost Curve

A graph that shows the relationship between total variable cost and the level of a firm’s output.