Which of the Following Statements Is TRUE

question 86

Multiple Choice

Which of the following statements is TRUE?

• A) The marginal product is the change in total revenue divided by a one-unit change in a factor.
• B) The marginal revenue is the change in total output divided by the change in output.
• C) The value of the marginal product is the marginal product times the price.
• D) The marginal cost is equal to the average total cost.

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Definitions:

Accumulated Profit

The total amount of net income retained in a company over its entire history, not distributed as dividends.

Liquidation

The process of converting assets into cash or cash equivalents by selling them.

Dividends

Awards made by a business to its shareholders, usually resulting from the disbursement of profits.

Voting Rights

The entitlement of shareholders to vote on corporate matters and decisions during stockholders' meetings.