The Change in Cost Resulting from Producing One Additional Unit

question 40

Multiple Choice

The change in cost resulting from producing one additional unit of output is

• A)average total cost
• B)total variable cost
• C)average variable cost
• D)marginal cost
• E)total cost

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Definitions:

Nominal GDP

The aggregate price of every ultimate good and service generated within a nation over a certain period, valued in the current monetary rates without modifications for inflationary changes.

Hyperinflation

A very high rate of inflation.

Deflation

A decrease in the general price level of goods and services in an economy over a period, often leading to increased purchasing power of the currency.

Inflation

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.