The marginal factor cost is the
A) additional revenue obtained from a one-unit change in labor input.
B) additional revenue obtained from a one-unit change in output.
C) change in output resulting from the addition of one more worker.
D) cost of using an additional unit of an input.
D
You might also like to view...
At its current level of output, a firm’s average cost is $25 and its marginal cost is $20. If the firm increases output by one unit and marginal cost is $22, average cost will be
A. greater than $25. B. equal to $25. C. less than $25. D. equal to marginal cost.
In a perfectly competitive market:
A. firms are price setters. B. firms produce the quantity for which marginal cost equals price. C. firms can increase profits by charging a price higher than the market price. D. buyers are price setters.
If the exchange rate between the yen and the dollar changes from 100 yen = $1 to 110 yen = $1, then:
a. the dollar has depreciated in value. b. U.S.-made goods will become less expensive to Japanese citizens. c. the dollar has appreciated in value. d. Japanese-made goods will become more expensive to U.S. citizens. e. there will be an increase in the demand for dollars in the foreign exchange market.
An indexed equity mutual fund
a. is directly tied to either the consumer price index or the GDP deflator. b. is a fund that hires a manager who will try to pick the stocks that will increase most in value in the future. c. merely holds stocks in the same proportion as they exist in a broad stock market index like the Standard & Poor's 500. d. will have high operating costs because these funds engage in a substantial amount of stock trading.