The ________ Cost to Society of Producing an Additional Unit

question 182

Multiple Choice

The ________ cost to society of producing an additional unit of a good or service is the marginal social cost.

• A) private
• B) subsidized
• C) total
• D) damage

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Definitions:

Constant Costs

Costs that do not change in total with the level of activity or production volume, within a certain range of activity or period of time.

Domestic Real Cost

The actual economic cost of production or acquisition, factoring in domestic purchasing power and excluding the effects of inflation.

Trading Possibilities Curves

A graphical representation illustrating the range of goods or services that two countries can trade with each other under the assumption of no trade barriers.

Production Possibilities Curves

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.