The Change in a Company's Total Cost from Producing One

question 239

Multiple Choice

The change in a company's total cost from producing one more unit is called:

• A) average total cost.
• B) marginal cost.
• C) average fixed cost.
• D) variable cost.
• E) average variable cost.

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Definitions:

Unit Sales

The quantity of items sold or number of services provided by a business in a given time period.

Revenue Model

A framework for generating financial income, identifying which revenue source to pursue, what value to offer, how to price the value, and who pays for the value.

Flat Fee

A pricing structure that charges a single fixed fee for a service, regardless of usage or time expended.

Franchising Revenue Model

Earning revenue by selling franchises of an existing business to allow another party to trade under the name of that business.