The Table Given Below Reports the Marginal Revenue and Marginal

question 101

Multiple Choice

The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2

-Which of the following is true of marginal cost?

• A)Marginal cost is the cost per unit of output produced.
• B)Marginal cost is the change in total cost divided by the change in total output.
• C)Marginal cost curve is negatively sloped at the profit-maximizing level of output.
• D)Marginal cost is equal to total cost divided by the quantity of output.
• E)Marginal cost initially increases with an increase in output but subsequently declines.

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Definitions:

Desired Rate

Often refers to the target or preferred rate of return on investment or progress in a specific area, such as growth or interest.

Present Value Factor

A numerical figure used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Annual Cash Flows

The total amount of money being transferred into and out of a business, especially analyzed on a yearly basis.