Marginal social cost is equal to
A) the amount people who buy a product pay for another unit.
B) whatever producers have to pay to produce output.
C) the sum of marginal private cost and the marginal external cost.
D) the average of marginal private cost and the marginal external cost.
E) None of the above answers is correct.
C
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Bureaus are
a. special-interest groups that try to influence legislators b. government agencies that implement legislation c. competing-interest groups that battle federal agencies d. collections of legislators who actively engage in logrolling e. a means of enforcing the median voter model in the decision-making process
Tombstones are produced in a monopolistic competitive market. One producer, Rolling Stones, sells 20 tombstones a week at a price of $500 each. Its average total cost is $600 . From this information, we can tell:
a. new tombstone firms will want to enter. b. this producer is losing $2,000 a week. c. this producer is making an economic profit of $400. d. this producer is setting MR = MC. e. this producer should increase production.
The marginal revenue product of a resource:
a. is defined as the marginal product of the resource multiplied by the resource price. b. simply means that a firm should add to its capital stock as long as competition requires it. c. equals the extra output produced by an additional unit of the resource multiplied by the price of that output. d. equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.
If the output effect is larger than the price effect, an individual firm will __________ production
Fill in the blank(s) with correct word