Marginal cost
A. is the increase in total cost resulting from production of one additional unit of output.
B. is the cost of the marginal unit of output.
C. and the average cost curve are U shaped.
D. All of the responses are correct.
Answer: D
You might also like to view...
Does the existence of non-tradable goods allow for deviations from Purchasing power Parity?
What will be an ideal response?
When the price of a key input increases suddenly, it causes:
A. cost push inflation. B. the business cycle to become sporadic. C. demand pull inflation. D. the velocity of money to rise.
Using the production function Real GDP = T (L, K), define the term production function and describe what each of the variables (T, L, and K) represents. When graphed with Real GDP on the vertical axis and labor on the horizontal axis, which variable(s) can shift the production function and which variable(s) can cause a movement along the production function?
Firms will sometimes not raise their prices, even when there is a large increase in demand for their products because they fear consumers will consider the price increases unfair.
a. true b. false