Marginal Factor Cost (MFC) Is

question 45

Multiple Choice

Marginal factor cost (MFC) is

• A)the additional cost generated by producing an additional unit of output.
• B)the additional revenue generated by employing an additional factor unit.
• C)the additional cost generated by employing an additional factor unit.
• D)total cost from the production of a product divided by the total number of factor units used.

---

Definitions:

High Demand

A market condition where the desire for a product or service significantly exceeds its supply or availability.

Maximin Criterion

A decision rule used in uncertainty conditions, selecting the option with the best of the worst possible outcomes.

Uncertainty

The state of having limited knowledge about an existing condition or future outcome, making it difficult to make accurate predictions or decisions.

Pessimist

A pessimist is an individual who tends to see the worst aspect of things or believe that the worst will happen, often focusing on negatives rather than positives.