Economics Can Safely Ignore Questions of Fairness When Examining Trade-Offs

question 44

True/False

Economics can safely ignore questions of fairness when examining trade-offs.

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Definitions:

Total Cost

The sum of all costs incurred by a business to produce a specific amount of goods or services, including fixed and variable costs.

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Marginal Cost

The financial outlay for producing an incremental unit of a product or service.

Short-Run Supply

The total quantity of a good or service that businesses are willing and able to sell at current prices in a short time period.