The Cost of Producing One More Unit of a Good

question 312

Multiple Choice

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

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

---

Definitions:

Shoot The Messenger

A phrase describing the act of blaming the bearer of bad news for the news itself rather than addressing the source of the problem.

Health Care Benefits

Advantages or coverage provided by insurance or employers that contribute to the cost of medical care and services.

Major Reduction

A significant decrease or cutback in size, amount, or strength of something.

Indirect Strategy

A communication approach that presents the main message after providing explanations, justifications, or background information.