Use the Following to Answer Questions: Table: Two Firms -(Table: Two Firms) Ignoring Fixed Costs, the Total Cost of

question 84

Multiple Choice

Use the following to answer questions: Table: Two Firms $$\begin{array} { c c c } \hline \text { Item } & \boldsymbol { M C } \text { of Firm 1 } & \boldsymbol { M C } \text { of Firm 2 } \\\text { Number } & & \$ 2.50 \\\hline \text { First } & \$ 5 & 5.00 \\\text { Second } & 10 & 7.50 \\\text { Third } & 15 & 10 \\\text { Fourth } & 20 & \\\hline\end{array}$$
-(Table: Two Firms) Ignoring fixed costs, the total cost of producing 3 units of output for Firm 2 in this table is:

• A) $25.50.
• B) $15.
• C) $7.50.
• D) $10.

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Definitions:

Gini Coefficient

A number that summarizes a country’s level of income inequality based on how unequally income is distributed across quintiles.

Income Inequality

The unequal distribution of household or individual income across the various participants in an economy.

Ability-to-pay Principle

A tax principle that suggests taxes should be levied according to an individual or entity's capacity to pay, reflecting their income or wealth.

Transfer Payments

Payments made by governments to individuals or other entities without the expectation of a direct return or the provision of goods or services, such as social security benefits or subsidies.