A Company Could Produce 100 Units of a Good for $320

question 422

Multiple Choice

A company could produce 100 units of a good for $320 or produce 101 units of the same good for $324. The $4 difference in costs is

• A) the marginal benefit of producing the 101st unit.
• B) the marginal cost of producing the 101st unit.
• C) both the marginal benefit and the marginal cost of producing the 101st unit.
• D) neither the marginal benefit nor the marginal cost of producing the 101st unit.

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Definitions:

Computer Simulation

Computer Simulation is a digital simulation of a real-world process or system over time, using computer software to study the behavior under various conditions.

Asset Management

The systematic process of developing, operating, maintaining, and selling assets in a cost-effective manner.

Required Rate Of Return

The minimum return an investor expects to achieve on an investment, taking into account its risk level.

Productivity

Productivity is a measure of the efficiency of production, often expressed as the ratio of output to input in the production of goods and services.