The marginal cost of a good is:
a. always smaller than the average cost of the good.
b. the cost of producing an additional unit of the good.
c. the cost of producing all the units of a the good

A freeze in Florida's orange growing regions will:

A result in a sharp increase in the price of oranges in the short run because demand and supply are highly elastic. B result in a sharp increase in the price of oranges in the short run because demand and supply are highly inelastic. C result in little change in the price of oranges in the short run because supply is infinitely elastic. D result in a sharp decrease in the price of oranges in the short run because demand is highly inelastic and supply is highly elastic.

A grower of commercial Christmas trees can raise blue spruce and Douglas fir. Therefore, an increase in the expected market price of Douglas firs tends to

A) reduce the planting of Douglas firs. B) reduce the planting of blue spruce trees. C) increase the cost of planting Douglas firs. D) do none of the above.