Which of the following is true of marginal cost?
a. Marginal cost is the cost per unit of output produced.
b. Marginal cost is the change in total cost divided by the change in total output.
c. Marginal cost curve is negatively sloped at the profit-maximizing level of output.
d. Marginal cost is equal to total cost divided by the quantity of output.
e. Marginal cost initially increases with an increase in output but subsequently declines.
b
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Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below the cost of production
In foreign countries, the argument that would made to restrict chicken trade with the United States would be the A) penalizes lax environmental standards argument. B) saves jobs argument. C) infant-industry argument. D) dumping argument. E) national security argument.
In order to be effective, the minimum wage must be
a. increased every 3 years. b. above the market wage. c. below the market wage. d. higher for teenage workers.
The time required _____ is not a time lag associated with using discretionary policy to correct an economic problem
a. to recognize the problem b. to decide how to handle the problem c. to set a policy change in action d. for a policy to affect economic variables e. to observe public reaction after a policy announcement is made
The Farley Farm, a dairy company, has total costs of $15,000 and total variable costs of $2,000. The Farley Farm's total fixed costs are
A. $0. B. $13,000. C. $17,000. D. indeterminate because the firm's output level is not known.