Marginal Factor Cost Is Defined as the Amount That an Additional

question 4

Multiple Choice

Marginal factor cost is defined as the amount that an additional unit of the variable input adds to ____.

• A) marginal cost
• B) variable cost
• C) marginal rate of technical substitution
• D) total cost
• E) none of the above

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Definitions:

Nominal Variables

Categorical variables that have two or more categories without having a natural order or rank.

College Major

The specialized area of study or field chosen by a college or university student to focus their academic coursework and degrees.

Nominal

A level of measurement that categorizes data but does not rank them.

Dummy Variables

Variables created to include categorical data in regression models by converting categories to a binary form (0 or 1), representing the presence or absence of some categorical effect.