Suppose Dar Al -Shorouk, the Beirut -Based Publishing Company, Is

Multiple Choice

Suppose Dar Al -Shorouk, the Beirut -based publishing company, is considering expanding its production of an already published book. Dar Al -Shorouk's managers want to estimate the marginal cost of production. How can they best do this?

A) by adding a desirable profit margin to the book's selling price to cover overheads such as rent and editor's salaries and dividing that amount by the planned number of copies to be published
B) by adding up every expense associated with the book, including the overhead like rent and editors' salaries, and then dividing by the planned number of copies to be published
C) by using the book's selling price as an indicator of the marginal cost since price equals marginal cost is a profit maximizing rule
D) by adding up only the variable costs associated with a book, such as printing cost, and excluding overheads like rent and editors' salaries, and then dividing the total variable costs by the planned number of copies number of copies to be published