Marginal cost is best defined as
A) the extra cost of producing one more unit of output.
B) the profit earned from selling one more unit of output.
C) the price received from selling one more unit of output.
D) equal to producer surplus.
A
You might also like to view...
If there is an increase in demand for a good,
a. there will be an increase in demand for the inputs that produce it. b. there will be a decrease in demand for the inputs that produce it. c. there will be an increase in supply of the inputs that produce it. d. there will be a decrease in supply of the inputs that produce it.
The government wishes to close a recessionary gap by increasing national income by $700 billion. The MPC = 0.8 . Two policies are offered. Policy A calls for $180 billion in increased government spending and $50 billion in increased taxes. Policy B calls for $200 billion in increased government spending and $100 billion in increased taxes. Which of the following will increase the national income
by the desired $700 billion? a. Both policies increase national income by $700 billion but Policy B offers a lower budget deficit. b. Both policies increase national income by $700 billion and create equal budget deficits. c. Neither policy increases national income by $700 billion. d. Only Policy A increases national income by $700 billion. e. Only Policy B increases national income by $700 billion.