Marginal Cost Refers to

question 28

Multiple Choice

Marginal cost refers to

• A)the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold.
• B)the sum of the expenses of the firm that vary directly with the quantity of a product that is produced and sold.
• C)the total expense incurred by a firm in producing and marketing a product,which equals the sum of fixed cost and variable cost.
• D)the average amount of money received for selling one unit of a product or simply the price of that unit.
• E)the change in total cost that results from producing and marketing one additional unit of product.

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Definitions:

Effective

Achieving the desired outcome or result with optimal use of resources and time.

Manageable

Capable of being controlled, handled, or dealt with effectively.

Value Chain

A model that describes the full range of activities needed to create a product or service, from initial conception to final use and beyond.

Productivity Increased

A measure indicating an enhancement in the efficiency of production, often resulting in more output with the same amount of input.