Marginal cost

A. is the average cost of production divided by output.
B. equals the increase in AVC resulting from producing one more unit.
C. always equals average cost.
D. is the increase in total cost resulting from producing one more unit.


Answer: D

Economics

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Suppose the market demand curve (D) in an oligopoly market characterized by a dominant firm and a fringe is given by Q = 25 - 2P. The fringe supply curve is given by QF = -1 + 0.3P. If the marginal cost of production for the dominant is $3, calculate the market price and total output produced by the dominant firm and the fringe

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a. downward sloping. b. upward sloping. c. horizontal. d. vertical.

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If government uses its stabilization policies to maintain full employment under conditions of cost-push inflation:

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