Marginal cost is calculated as
A) total cost divided by output.
B) the increase in total cost divided by the increase in output.
C) the increase in total cost divided by the increase in labor, given the amount of capital.
D) total cost minus total fixed cost.
B
You might also like to view...
Native-born workers may not be harmed by immigration if it:
A. Reduces wages and labor demand is inelastic B. Reduces the rate of return on capital C. Increases the rate of return on capital D. Causes production costs to rise
Which of the following would tend to shift the production function upward?
a. an increase in the number of hours worked b. an increase in population c. an increase in the size of the labor force d. an increase in the level of technology
"By producing at an output rate at which marginal revenue equals marginal cost, a firm is definitely making positive economic profits." Do you agree or disagree? Why?
What will be an ideal response?
AA is Al's indifference curve and BB is Betty's. Al and Betty have the same budget line, LL. This information implies that:
A. Al's demand for X is greater than Betty's.
B. Al's demand for Y is greater than Betty's.
C. Al and Betty have the same demand for both products.
D. Al will buy some of X, but Betty will not.