When costs spill over to third parties, there is a(n)
A) cost overrun.
B) excessive competition.
C) negative externality.
D) government subsidy.
C
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Assume that one laborer produces 6 units of output, two laborers produce 14 units, three produce 20 units, and four produce 24 units. If the cost is $20 per unit of labor and fixed costs are $100, what is the average total cost of producing 14 units of output?
a. $50 b. $20 c. $10 d. $100 e. $40
Assume Alan's budget constraint is demonstrated by line A in the graph shown. Which of the following could cause Alan's budget constraint to change to line B?
A. Alan could have experienced a drop in income.
B. The price of books could have increased.
C. Alan could have decided he doesn't like going to the movies as much as he used to.
D. The price of movie tickets could have increased.