Marginal Resource Cost Is Defined as the

question 110

Multiple Choice

Marginal resource cost is defined as the

• A)additional cost of producing an additional unit of output
• B)change in resource employment required to increase the units of output produced
• C)ratio of marginal revenue product to the market price of the output sold
• D)additional cost of employing one additional unit of a resource
• E)ratio of the change in total resource usage to the change in total resource cost

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Definitions:

Marginal Cost

The rise in expense associated with the production of an extra good or service unit.

Marginal Rate of Substitution

The measure of how much of one good a consumer can give up in favor of another, without impacting their level of well-being.

Socially Efficient

A situation in which an outcome benefits society as a whole and resources are allocated in the most beneficial manner from a societal perspective.

Marginal Cost

The increase in total cost that arises from producing one extra unit of a good or service.