The Table Given Below Reports the Marginal Revenue and Marginal

question 101

Multiple Choice

The table given below reports the marginal revenue and marginal cost of Holmes Detective Agency for each client.Table 9.2

-Which of the following is true of marginal cost?

• A)Marginal cost is the cost per unit of output produced.
• B)Marginal cost is the change in total cost divided by the change in total output.
• C)Marginal cost curve is negatively sloped at the profit-maximizing level of output.
• D)Marginal cost is equal to total cost divided by the quantity of output.
• E)Marginal cost initially increases with an increase in output but subsequently declines.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the normal depreciation rate to expense the asset more quickly.

Estimated Life

The expected duration over which an asset is likely to be useful or productive in its intended operation, used for depreciation purposes.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life, resulting in the same depreciation expense each year.

Depreciable Cost

The total cost of a tangible asset that can be depreciated over its useful life, excluding salvage value.