Marginal Cost

question 58

Multiple Choice

Marginal cost

• A)measures how total cost changes when input prices change.
• B)measures how total cost changes when one more unit of output is produced.
• C)is less than average cost when average cost is decreasing.
• D)both a and b
• E)both b and c

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Definitions:

Market Demand Curve

A graphical depiction showing the quantity of a commodity that consumers in a market will purchase at various prices.

Marginal Cost

The price of generating one more unit of a product or service.

Profit-Maximizing Price

The price level at which a business can achieve the highest profit, considering its cost of production and the demand for its product.

Payoff Matrix

A table that shows the possible outcomes of different strategies in a game or decision-making situation, often used in game theory.