If There Are No Fixed Costs and Variable Costs Are

question 19

Multiple Choice

If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output,what is the marginal cost of the second unit?

• A)$0
• B)$0.50
• C)$1
• D)$2

---

Definitions:

Text Messaging

The act of composing and sending brief electronic messages between two or more mobile devices or fixed or portable devices over a phone network.

Hand-Held Cellular

A portable device, often referred to as a mobile phone or smartphone, used for communication.

Cocktail Party Phenomenon

The capacity to concentrate one's listening efforts on a specific sound while ignoring other surrounding noises.

Posner Effect

A phenomenon in cognitive psychology indicating that attention can be directed to a location without the need for the eyes to move.