Which of the following refers to the additional cost of producing one more unit?
a. Marginal cost
b. Variable cost
c. Average cost
d. Explicit cost
a. Marginal cost
Marginal cost refers to the additional cost of producing one more unit.
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Average cost regulation of a natural monopoly: a. generates economic losses for the seller
b. necessitates a subsidy payment to the firm. c. creates incentives that tend to shift ATC curves in an upward direction. d. imposes a price that is less than marginal cost.
A worsening of a country's terms of trade means that its export prices are falling relative to its import prices
Indicate whether the statement is true or false
Jennifer takes 2 hours to make a loaf of bread and 1 hour to make a dozen cookies. Janet takes 3 hours to make a loaf of bread and 3/4 hours to make a dozen cookies. Who, if either, has an absolute advantage baking bread? Who, if either, has an absolute advantage making cookies?
External shocks include all of the following except
A. Wars. B. Population growth. C. Natural disasters. D. Terrorist attacks.