The Study of a Single Firm and How It Determines

question 142

Multiple Choice

The study of a single firm and how it determines prices would fall under:

• A) macroeconomics.
• B) microeconomics.
• C) the study of inflation.
• D) normative economics.

---

Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no one can be effectively excluded from use and where use by one individual does not reduce availability to others.

Marginal Product

The increase in output that is produced by adding one more unit of a particular input while holding all other inputs constant.

Total Output

The complete amount of goods or services produced by an economy, sector, or organization over a certain period.

Least Skilled Worker

An employee who possesses the minimal skills required for a job, often receiving the lowest wages.