Marginal Analysis Is Used to Determine

question 123

Multiple Choice

Marginal analysis is used to determine:

• A) the maximum profit by comparing maximum revenue and marginal cost.
• B) the profit maximising output.
• C) the market price resulting from a one unit change in output.
• D) the change in the total cost as the price changes.

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Definitions:

8%

A percentage, often representing an interest rate, return on investment, or growth rate.

Annuity Contract

A financial product sold by financial institutions that provide a fixed stream of payments to an individual for a period of time.

8% Return

An investment objective or outcome where the investor aims to achieve an annual return of 8 percent on the invested principal.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.