The cost of producing one more unit of a good or service that is paid by the producer
A) has to be equal to the benefit that the consumer derives from that good.
B) is equal to the cost borne by people other than the producer.
C) is the marginal private cost.
D) is the marginal external cost.
C
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Refer to Scenario 4 . What is the opportunity cost of building one more prison?
What will be an ideal response?
Both classicals and Keynesians agree that policymakers
A) can exploit the Phillips curve in the short run. B) cannot exploit the Phillips curve in the short run. C) can keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation. D) cannot keep the unemployment rate permanently below the natural rate by permanently running a high rate of inflation.
In the text, the key question in the "economics of a business" is
A) whether the need to grow revenues is being met. B) should the firm be in the business in which it is operating. C) whether the firm faces rising labor costs. D) can the firm affect its market share.
The graph of a direct relationship will have a positive slope
a. True b. False Indicate whether the statement is true or false