The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the marginal
A) external cost.
B) private cost.
C) social cost.
D) public cost.
E) None of the above answers is correct.
B
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Assume the demand function for good X can be written as Qd = 80 - 3Px - 2Py + 10I where Px = the price of X, Py = the price of good Y, and I = Consumer income. This equation implies that X and Y are complements
Indicate whether the statement is true or false
Using a Cobb-Douglas production function, Y/N = (K/N)b, the marginal product of capital is
A) b(K/N)b-1. B) b(K/N). C) (K/N)b-1. D) (K/Y)b.
If the government provides free schooling for all students, an economist would say education is
a. a free good, having no cost. b. scarce even though its cost is paid by taxpayers rather than by students. c. an example of a good that is no longer scarce. d. all of the above.
Free trade allows firms to realize economies of scale, resulting in higher costs of production
a. True b. False Indicate whether the statement is true or false