Economic Models That Make Unrealistic Assumptions May Be Useful in Analyzing

question 142

True/False

Economic models that make unrealistic assumptions may be useful in analyzing some economic problems.

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Definitions:

Marginal Cost

The hike in expense for producing another unit of a product or service.

Marginal Revenue

The extra revenue a company earns by selling an additional unit of a product or service.

Output Level

The quantity of goods or services produced by a business, industry, or economy at a given time.