Marginal cost
A. always equals average cost.
B. is the increase in total cost resulting from producing one more unit.
C. equals the increase in AVC resulting from producing one more unit.
D. is the average cost of production divided by output.
Answer: B
You might also like to view...
Use the idea of external costs to explain why some cities have laws against late-night rock concerts
What will be an ideal response?
How can lack of investment in social capital affect private firms' profits?
What will be an ideal response?
The use of pollution charges to reduce pollution confronts the problem of
a. free riders who avoid revealing benefits from abatement. b. determining specific individual damages and appropriate charges associated with pollutants. c. necessarily lowering the price of the products. d. requiring no agency to administer the tax.
The indices that are based on a fixed market basket of goods and services are
A. CPI, PPI and GDP deflator. B. CPI and GDP deflator. C. CPI and PPI. D. PPI and GDP deflator.