The Marginal Cost of Consuming Another Unit of a Good

question 25

Multiple Choice

The marginal cost of consuming another unit of a good:

• A) must equal the marginal benefit or the unit will not be consumed.
• B) must exceed the marginal benefit or the unit will not be consumed.
• C) equals the increase in total cost when another unit is consumed.
• D) equals the total cost of consuming all prior units.

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Definitions:

Human Relations School

An approach to management and organizational theory that emphasizes the importance of human needs in the workplace and the key role of social interactions in employee satisfaction and productivity.

Primary Labor Market

Is composed mainly of highly skilled or well-educated white males. They are employed in large corporations that enjoy high levels of capital investment. In the primary labor market, employment is secure, earnings are high, and fringe benefits are generous.

Highly Skilled

Possessing advanced levels of expertise, training, or education in a specific field or activity.