The marginal factor cost is the
A. change in output resulting from the addition of one more worker.
B. additional revenue obtained from a one-unit change in labor input.
C. cost of using an additional unit of an input.
D. additional revenue obtained from a one-unit change in output.
Answer: C
You might also like to view...
Economists and others use economic theory
A. only to analyze situations in which money changes hands. B. as a partial basis for public policy recommendations. C. to confuse their enemies. D. instead of using value judgments concerning important policy issues.
In the case before her, Judge Thomas has heard claims by orange growers that to order a stop to orange growing in order to control a pest that thrives on oranges plants but does not harm them would result in a loss of profits of $3 million a year. The pest however causes $2 million of damages to trees owned by pulp manufacturers. The orange growers have not mentioned that they could control the pest at a cost of $1 million per year. High transactions costs have prevented the parties from reaching a private agreement. If she gives the property right to the
a. orange growers, they will then voluntarily control the pest. b. orange growers, they will not control the pest. c. pulp manufacturers, they will pay the orange growers to control the pest. d. pulp manufacturers, the orange growers would offer a side payment of at least $2 million to be able to grow oranges.
Assume that the cost of producing a hardback book is roughly equivalent to producing a paperback book. Explain how and why then do publishing companies charge higher prices for the hardback book and a much lower price for the paperback book
What will be an ideal response?
Refer to Figure 2-8. What is the opportunity cost of 100 dozen roses?
A) 0.8 dozen orchids B) 5 dozen orchids C) 40 dozen orchids D) 80 dozen orchids