Table 6-D
the Table Below Shows How Total Cost Varies

question 38

Multiple Choice

Table 6-D
The table below shows how total cost varies with output in a factory producing watches:
$$\begin{array} { c c } \begin{array} { c } \text { Output } \\\text { (Per Week) }\end{array} & \begin{array} { c } \text { Tatal Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & \$ 50 \\1 & \$ 60 \\2 & \$ 65 \\3 & \$ 69 \\4 & \$ 72 \\5 & \$ 95 \\6 & \$ 120\end{array}$$
-Refer to Table 6-D.The marginal cost of producing a third watch equals:

• A)$50.
• B)$69.
• C)$5.
• D)$4.
• E)none of the above.

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Definitions:

Capital Gains Yield

The rise in the price of a security, expressed as a percentage, which results in a capital gain for the investor.

Common and Preferred Stock

Designations for equity investments, where common stockholders have voting rights and dividend variability, while preferred stockholders receive dividends at fixed rates and have priority over common stock in asset distribution.

Non-callable Debentures

Fixed-income securities that cannot be redeemed by the issuer before their specified maturity date.

Share Price

The existing market price for a solitary share of a company's equity, available for trading.