Marginal factor cost is computed as
A. change in the total cost of the resource/total amount of the resource being used.
B. total cost of the resource/total amount of the resource being used.
C. total cost of the resource/change in the amount of the resource being used.
D. change in the total cost of the resource/change in the amount of the resource being used.
Answer: D
You might also like to view...
Suppose consumer confidence declines and as a result, consumer spending decreases by $4 billion dollars
Other things equal, if households spend $0.75 of each extra dollar of income and save the remaining $0.25, by how much will spending decrease during the third round through the circular flow? A) $1 billion B) $2.25 billion C) $3 billion D) $4 billion
Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:
A. -0.1818 B. -1.0 C. 0.1818 D. 1.2 E. -1.5
Contractionary fiscal policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above.
Which of the following types of firms should expect a higher rate of return?
a. an auto dealership b. a biotech pharmaceutical firm c. a manufacturer of screws and bolts d. a paper products firm e. all of the above