The additional cost a firm will incur by producing one additional unit of output is the:
A. variable cost.
B. fixed cost.
C. marginal cost.
D. total cost.
C. marginal cost.
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When producers do not have to pay the full cost of producing a product, they tend to
A. underproduce the product because of a positive externality. B. underproduce the product because of a negative externality. C. overproduce the product because of a positive externality. D. overproduce the product because of a negative externality.
Those who oppose minimum wage legislation argue that:
A. workers deserve a basic standard of living. B. setting a wage above the market-clearing equilibrium creates unemployment. C. the way to get an efficient labor market is for government intervention. D. it should be set below the market-clearing equilibrium.
A household ________ as long as the utility from the good's consumption is less than its market price.
A. will always buy a good B. should never buy a good C. will only buy a good D. should never sell a good
The information-aggregation problem faced by the top layers of government can make it hard for the high-level officials to:
A. Discern the prices of specific goods and services in the economy B. Comprehensively assess the marginal costs and benefits of specific programs C. Monitor the incomes of individual firms and households D. Estimate the total amount of spending incurred by the government