Recall the Application about the marginal cost involved in producing crude oil to answer the following question(s).Recall the Application. Why does the marginal cost of producing crude oil increase as the volume of crude oil increases?
A. The different costs reflect the higher costs of extracting oil at different sources.
B. The different costs reflect the different costs of transporting oil to the United States.
C. The different costs reflect the higher taxes that the government imposes on higher production of oil.
D. The different costs reflect the different exchange rates needed to buy the oil from different countries.
Answer: A
You might also like to view...
If the demand for a good is perfectly elastic, the price elasticity of demand is ________ and the demand curve is ________
A) infinite; vertical B) zero; vertical C) zero; horizontal D) infinite; horizontal
A perfectly competitive firm's short-run supply curve is the:
a. demand curve above the marginal revenue curve. b. same as the market supply curve. c. marginal cost curve above the average variable cost curve. d. average total cost curve.
John argues that when the price of a good decreases, people will purchase less of the good. This statement is
A) consistent with the law of demand. B) inconsistent with the law of demand. C) referring to money prices. D) consistent with the law of supply.
A decrease in a fixed exchange rate from $1.75 per pound to $1.60 per pound is called a(n) ________ of the pound
A) devaluation B) depreciation C) revaluation D) appreciation