Marginal cost
a. is the increase in total cost resulting from production of one additional unit of output.
b. is the cost of the marginal unit of output.
c. and the average cost curve are U-shaped.
d. All of the above are correct.
d
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Candy has a $100 gift card to a department store and needs a new watch. She walks into the store and is overwhelmed by the sheer number of watches and price points, from $30 to $3,000. She loves expensive luxury watches but has no other money to spend. She also loves cosmetics and would spend any money left over from the gift card on makeup. Explain how she can use the concept of marginal utility to analyze the options available to her and maximize her satisfaction.
What will be an ideal response?
________ is a market structure in which a large number of firms compete vigorously with each other in producing and selling different varieties of a basic product.
A. Monopolistic competition B. Perfect competition C. Monopoly D. Oligopoly
Households receive bonds when they
A. purchase a share of ownership in firms. B. sell shares of a firm's stock. C. borrow money from financial institutions. D. lend money directly to firms.
The "Buy American" provision in the 2009 stimulus package required that stimulus money be spent only on U.S.-made goods, effectively acting as a quota of zero imports when stimulus money was being spent. The "Buy American" provision would ________
consumer surplus and ________ producer surplus for industries that produced protected products in the United States. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease