Marginal cost is best defined as:
a. a cost that does not vary with the rate of output.
b. the difference between fixed and variable cost at any level of output.
c. the amount added to total cost when one more unit of output is produced.
d. the difference between price and average total cost at the profit-maximizing level of output.
c
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If 2010 is the base year in the table shown above, what is the price index for the year 2010?
A) 100.0 B) 121.3 C) 147.1 D) 141.7
The Condorcet paradox demonstrates that the result of a majority vote may be affected by
a. moral hazard. b. adverse selection. c. the order of the votes. d. All of the above are correct.
When output is 500, a firm's fixed costs are $10,000 and its variable costs are $15,000. The firm's total costs are therefore:
A. $25,000. B. $15,000. C. $10,000. D. $ 5,000.
If the elasticity of demand for a service is 1, then the demand for that service is
A. perfectly elastic. B. elastic. C. unit elastic. D. inelastic.