The marginal cost of a good is:
a. the difference between average total cost and average variable cost
b. the addition to total cost from producing one more unit of output.
c. decreasing whenever average total cost is decreasing.
d. always equal to average variable cost when the firm is maximizing profit.
b
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Refer to Figure 2-10. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A) 26 thousand forks B) 60 thousand spoons C) 0 spoons D) 20 thousand forks
Under a transferable emissions permit system with n possible polluters, the government enforces the total amount of emissions allowable at X units by
A) setting a different fee for each firm so that each firm chooses to emit X/n units. B) setting the same fee for each firm so that each is forced to emit X/n units. C) setting a different standard for each firm, with X/n being the average. D) setting the same standard for each firm at X/n. E) issuing X permits.
We may see government supply social work internally rather than through private firms because
a. it is a public good b. it is difficult to monitor the quantity and quality of social work provided c. private firms would seek to cover their costs d. a government bureau would maximize its budget e. there is a great demand for such services
Which of the following forces did Keynes assert had the strongest influence on consumption decisions?
A. Wealth. B. Interest rates. C. Disposable income. D. Prices.