"A demand curve is the same as a marginal cost curve." Is this statement correct or incorrect? Explain your answer
What will be an ideal response?
The statement is incorrect. A demand curve is a marginal benefit curve not a marginal cost curve. A demand curve is a marginal benefit curve because it can be used to find the maximum price people are willing to pay for a given quantity, that is, the marginal benefit of the given quantity.
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Macroeconomics is the study of individual economic markets
Indicate whether the statement is true or false
A quintile is a group that contains
A) exactly 5 people. B) exactly one-fifth of the population. C) five identical siblings. D) five musicians or singers.
Suppose policy makers are pursuing a policy to fix the exchange rate. In such a system with perfect capital mobility, an open market sale of domestic bonds by the domestic central bank will eventually result in
A) a permanent increase in the monetary base. B) a permanent reduction in the monetary base. C) a gradual reduction in the domestic interest rate. D) a change in the composition of the monetary base.
What relates positive economics to normative economics?
A. The science of economics B. The art of economics C. Macroeconomics D. Microeconomics