Exhibit 7-14 Total Cost Curve

question 89

Multiple Choice

Exhibit 7-14 Total Cost Curve
-In Exhibit 7-14, at what point does the firm begin to experience increasing marginal cost?

• A) after the 1st unit of output
• B) after the 3rd unit of output
• C) after the 5th unit of output
• D) after the 7th unit of output
• E) cannot be determined from the total cost curve

---

Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling, usually measured over a year.

Spot Rate

The current market price used for immediate delivery of a financial instrument or commodity.

Interest Rate

This is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Forward Rate Market

Refers to a financial market that deals with contracts specifying the rate at which currencies, securities, or commodities will be exchanged at a future date.