The extra cost associated with producing or consuming the next unit is called the:
A. variable cost.
B. marginal cost.
C. utility cost.
D. sunk cost.
B. marginal cost.
You might also like to view...
The price of coffee rose 50 percent and coffee sales fell 25 percent. Doughnut sales also fell 25 percent. From this information we can conclude that
a. demand for coffee is inelastic. b. coffee and doughnuts are complements. c. the cross elasticity of demand is minus 0.5 percent. d. All of the above are correct.
Marquis decides to bank with First National Bank (FNB). He opens a checking account by depositing $1,000 . According to the FNB balance sheet, after this initial $1,000 checkable deposit, there are $1,000 in
a. reserves and $1,000 in checkable deposits. b. liabilities and $2,000 in checkable deposits. c. checkable deposits and $0 in assets. d. assets and $0 in liabilities. e. reserves and $0 in liabilities.
If a natural monopoly faces a relatively inelastic consumer demand over the range of the production, it will have an incentive to:
A. sell more. B. advertise more. C. charge a low price. D. charge a high price.
John Rawls's views on income distribution and fairness can best be described by the statement:
A. The lesser individuals' duty should be to work for the well-being of the brightest individuals. B. A high level of income inequality is necessary to sustain the arts, beauty, education, and civilization. C. Property rights should be equally distributed, and the market should determine the distribution of income. D. Society's goal should be to maximize the welfare of the least well-off, but some inequality is necessary to meet this goal.