An Example of a Complex Good Is a Car, and an Example

question 38

Multiple Choice

An example of a complex good is a car, and an example of a simple service is a(n)

• A) sock.
• B) accountant.
• C) hotel.
• D) laptop.

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Definitions:

Variable Cost

Costs that are directly proportional to the level of output or production.

Quantity

The amount or number of a product or service that is available for use or sale.

Marginal Product

The additional output resulting from a one-unit increase in the use of a variable input while holding other inputs constant.

Marginal Cost

The fees associated with creating one additional unit of a good or service.