Marginal cost can be defined as the change in
A. average total cost resulting from the production of an additional unit of output.
B. total cost resulting from the production of an additional unit of output.
C. average variable cost resulting from the production of an additional unit of output.
D. total fixed cost resulting from the production of an additional unit of output.
Answer: B
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If imports are $1,200 billion and exports are $1,300 billion, while net interest income and net transfers are zero, what is the current account balance?
What will be an ideal response?
Total profit is maximized
A. where the difference between total revenue and total cost is greatest. B. at that output level where marginal revenue equals average cost. C. where total revenue is at a maximum. D. at the point where all variable costs are covered.
Given the information above, the demand is
a. unitary. b. indeterminate. c. elastic. d. inelastic.
The statement "as more of a good is consumed, the utility a person derives from each additional unit diminishes" is known as the:
a. water and diamond paradox. b. law of diminishing marginal utility. c. law of total utility. d. marginal-utility-to-price ratio equalization rule. e. law of diminishing demand.