The _____ Is the Amount by Which an Additional Unit

question 64

Multiple Choice

The _____ is the amount by which an additional unit of activity increases its total cost.

• A)marginal cost
• B)average cost
• C)average profit
• D)marginal benefit

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Definitions:

Using Sinking Fund

The practice of setting aside money over time into a separate account to repay debt or replace a major asset in the future, thus avoiding a large lump-sum expense.

Market Value

Market value is the amount for which something can be sold in a given market at a particular time.

Redemption Value

The price per share a corporation pays to redeem or retire capital stock.

Preferred Stock

Class of capital stock that has preference to a corporation’s profits and assets.