The Addition to Total Cost That Results from Employing One

question 147

Multiple Choice

The addition to total cost that results from employing one additional unit of a resource is called

• A)average factor cost.
• B)marginal factor cost.
• C)average total cost.
• D)marginal cost.

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Definitions:

Utility Maximization

The economic principle whereby individuals or firms seek to allocate their resources in a way that maximizes their satisfaction or utility.

Total Utility Data

Information that measures the overall satisfaction or benefit a consumer derives from consuming a certain quantity of goods or services.

Rational Consumer

A person who systematically and logically evaluates choices to maximize their satisfaction or utility.

Consumer's Income

The total amount of money earned or received by an individual or household, which affects their purchasing power and demand for goods and services.