Marginal Cost Is the

question 213

Multiple Choice

Marginal cost is the

• A) change in average cost when an additional unit of output is produced.
• B) the additional output when total cost is increased by one dollar.
• C) additional cost of producing an additional unit of output.
• D) change in the price of inputs if a firm buys more inputs to produce an additional unit of output.

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Definitions:

Batching Economies

The cost advantages gained by producing or processing goods in large batches, as opposed to individually or in small quantities.

Procurement

The process of sourcing and acquiring goods, services, or works from an external source, often through tendering or competitive bidding.

Reorder Point

The inventory level at which an action is taken to replenish a particular stock item, ensuring that sufficient stock is available to meet demand.