A Difference Between a Surety and a Guarantor Is That

question 88

Multiple Choice

A difference between a surety and a guarantor is that the guarantors:

• A)must be paid for their services.
• B)should enter into a deed of trust with the creditors.
• C)should keep a collateral with the creditors.
• D)become liable only if the principal debtor first defaults.

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Definitions:

Diminishing Marginal Returns

A principle in economics where each additional unit of input results in a smaller increase in output than the previous unit, at a certain point.

Marginal Cost

The additional cost incurred in producing one more unit of a product, emphasizing the concept of optimizing production levels.

Average Total Cost

The total cost per unit of output, calculated by dividing the total cost of production by the total quantity produced.

Average Variable Cost

The variable cost (e.g., labor, materials) per unit of output, calculated by dividing total variable costs by the number of units produced.