A Unit Cost Is Computed By

question 49

Multiple Choice

A unit cost is computed by:

• A)multiplying total cost by the number of units
• B)dividing total cost by the number of units
• C)dividing variable cost by the number of units
• D)adding variable cost to fixed cost

Recognize how economic structures and policies affect productivity and living standards.

Understand the relationship between capital deepening and economic growth.

Understand the concept of productivity growth and its impact on long-term economic growth.

Calculate and interpret output per capita.

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Definitions:

Dominant Strategy

A strategy in game theory that yields the best payoff for a player no matter what the other players do.

Combined Profit

The aggregate profit earned by combining the net incomes of two or more entities, businesses, or investment sources.

Nash Equilibrium

An idea in game theory where the strategy chosen by each player is the best option, taking into account the strategies adopted by all other participants in the game.

Annual Profit

The net income a company or individual earns in a fiscal year after all expenses are subtracted from total revenues.