What is marginal cost?
Marginal cost is the rate of change in total variable cost. It is the increase in total variable cost for producing an extra unit of output. Marginal cost can be measured by the slope of the tangent to the total variable cost curve.
You might also like to view...
When the value of the dollar increases, the net effect on the economy
A) will be an increase in short-run aggregate supply and a decrease in aggregate demand. B) will be decrease in short-run aggregate supply and an increase in aggregate demand. C) will be an increase in both aggregate demand and aggregate supply. D) will be a decrease in both aggregate demand and aggregate supply.
In a perfectly competitive industry, assume the short-run average total cost increases as the output of the industry expands. In the long run, the industry supply curve will:
a. first have a positive slope and then a negative slope. b. have a negative slope. c. be perfectly horizontal. d. be perfectly vertical. e. have a positive slope.
If the MRP of labor decreases, labor:
a. demand will decrease. b. demand will increase. c. supply will increase. d. supply will decrease. e. demand and supply will be unaffected.
Economists can evaluate the desirability of the distribution of income
a. True b. False Indicate whether the statement is true or false