What is marginal cost? Which curve is also referred to as the marginal cost curve?
What will be an ideal response?
Marginal cost is the additional cost to a firm of producing one more unit of a good or service. The supply curve is also referred to as the marginal cost curve.
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Assume that a perfectly competitive firm hires workers from a perfectly competitive market for labor. The marginal product of a worker is 10 units per day
If the good that the worker produces is sold for $5, what is the maximum daily wage that should be offered to the worker?
Which of the following does Gordon believe people consider the single most important macroeconomic issue today?
A) inflation B) poverty C) unemployment D) low productivity
Which of the following statements best describes the central bank response to recession?
a. If recession threatens, the central bank uses a contractionary monetary policy to increase the supply of money, increase the quantity of loans, reduce interest rates, and shift aggregate demand to the right. b. If recession threatens, the central bank uses an expansionary monetary policy to increase the supply of money, increase the quantity of loans, reduce interest rates, and shift aggregate demand to the right. c. If recession threatens, the central bank uses an expansionary monetary policy to increase the supply of money, increase the quantity of loans, reduce interest rates, and shift aggregate demand to the left. d. If recession threatens, the central bank uses an contractionary monetary policy to increase the supply of money, increase the quantity of loans, reduce interest rates, and shift aggregate demand to the left.
Which of the following is the largest component of federal spending today?
A) income security B) Social Security C) Medicare D) national defense