The Marginal Cost of a Good or Service

question 35

Multiple Choice

The marginal cost of a good or service

• A) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping.
• B) can be derived from the production possibilities frontier.
• C) can be calculated from the marginal benefit of that good or service.
• D) decreases as more of the good or service is produced.
• E) None of the above answers is correct.

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Definitions:

Subsidized

Financial support provided, often by the government, to help reduce the cost of a service or commodity to the end user.

Economic Development

Activities aimed at improving the economic well-being and quality of life for a community, by creating and retaining jobs and supporting or growing incomes.

Operational

Pertains to the normal, day-to-day activities required for an organization or project to function effectively and efficiently.

Consolidation

Consolidation refers to the process of combining assets, liabilities, and other financial items of two or more entities into one.