Marginal cost is ____________
a. The revenue from selling an additional unit of output
b. none of the above
c. The total cost of production
d. The cost of producing an additional unit of output
d
You might also like to view...
Even though household have wide-ranging preferences, discuss some of the things that all households have in common including their constraints
What will be an ideal response?
What is meant by the term "long-run competitive equilibrium?
What will be an ideal response?
Capital inflows occur if foreign interest rates are greater than domestic interest rates
Indicate whether the statement is true or false
Consider a market with inverse demand p = 100 – 2Q. Firms have no fixed cost and constant marginal cost c
a. Derive the firms' outputs and profits when this market is served by Cournot duopolists. b. How do outputs and profits vary with c? Specifically, use calculus to find the derivative of the output of each firm and profit of each firm with respect to c. c. Suppose the firm's also have a fixed cost of F in addition to the marginal cost c. How does F alter the best response functions and NE? Explain in words. (For technical reasons, assume that both firms still produce a positive level of output in equilibrium)