Marginal social cost is equal to the
A) sum of marginal private cost and marginal external cost.
B) sum of marginal private cost and marginal private benefit.
C) marginal cost incurred by the producer of the good.
D) marginal cost imposed on others.
A
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_____ is the decline in value over time of capital equipment
a. Bracket creep b. Inflation c. Depreciation d. Diminishing productivity
Answer the following statements true (T) or false (F)
1. The prices of resources are an important factor in the determination of money income. 2. The demand for a resource is a derived demand based on the demand for the product it helps to produce. 3.The demand for a resource is a derived demand based on the demand for the product it helps to produce. 4 A firm's demand schedule for a resource is the firm's marginal product schedule for the resource. 5. A competitive firm's marginal revenue product of labor will fall as it employs more labor because of the decrease in the price of labor as more of it is employed.