Suppose that you sign up for a one-day cooking class at the local culinary school for $75. Once you arrive at the class, you discover that you must purchase an apron for an additional $5. In this situation, the additional $5 you pay for the apron is an example of
A. an inefficient cost.
B. opportunity cost.
C. an economic loss.
D. marginal cost.
Answer: D
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The cost of a one-unit increase in an activity
A) is called the total one-unit cost. B) is called the marginal cost. C) decreases as more of the activity is done. D) is called the marginal benefit/cost. E) is called the unit cost.
The process of taking advantage of market inefficiencies to earn profits is called:
A. arbitrage. B. technical analysis. C. a random walk. D. futures contracting.
Refer to the above graph, which shows an aggregate demand curve for a hypothetical economy. If the price level is 200, the quantity of real GDP demanded is:
A. $600 billion. B. $700 billion. C. $500 billion. D. $800 billion.
For a monopolistically competitive firm in long-run equilibrium,
A. the demand curve must be tangent to the average total cost curve at the ATC curve minimum. B. at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve. C. the demand curve must intersect the average total cost curve at the ATC curve minimum. D. at the profit-maximizing quantity, the demand curve must intersect the average total cost curve.