If We Know the Amount of Total Cost,average Total Cost,average

question 25

Multiple Choice

If we know the amount of total cost,average total cost,average variable cost,and marginal cost for each level of output,how can we find the level of output where the marginal product is the greatest?

• A) It is the output for which the marginal cost equals average variable cost.
• B) It is the output for which the total cost is maximized.
• C) It is the output for which the marginal cost is minimized.
• D) It is the output for which the marginal cost equals average total cost.
• E) There is no way to find where marginal product is the greatest knowing only cost data.

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Definitions:

Return

The gain or loss on an investment over a specific period, represented as a percentage of the investment’s cost.

Ordinary Annuity

An annuity where the payment or receipt occurs at the end of each period, such as bonds or leases that make consistent payments.

Interest Rate

The price paid for borrowing money, typically expressed as a percentage rate over a period of time.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.