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The Price of Chicken Has Doubled

question 85

Multiple Choice

The price of chicken has doubled. As a result, Andre will purchase pork instead of chicken. This is an example of the _____ effect.


Definitions:

Marginal Cost

The extra cost incurred from producing one additional unit of a good or service.

Marginal Product

The additional output that results from a one-unit increase in the input of a production factor, holding all other inputs constant.

Marginal Revenue Product

the additional revenue generated from using one more unit of a factor of production.

Marginal Revenue Product

The extra income created from using another unit of an element like labor or capital.

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