The Cost of Producing One More Unit of a Good

question 17

Multiple Choice

The cost of producing one more unit of a good or service that is paid by the producer

• A) is equal to the cost borne by people other than the producer.
• B) has to be equal to the benefit that the consumer derives from that good.
• C) is the marginal external cost.
• D) is the marginal private cost.

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Definitions:

Implied Condition

A legal term referring to a term or condition not expressly stated in a contract but assumed to be included by necessity or by the nature of the agreement.

Materially Breach

A significant failure to perform one's duties under a contract that results in harm to the other party and provides grounds for termination of the agreement.

Total Breach

A significant failure to fulfill a core obligation of a contract, allowing the other party to terminate the agreement and seek damages.

Estoppel

A legal principle preventing someone from arguing something contrary to a claim previously made or acted upon in good faith.