Suppose the Extra Cost of Producing an Extra Million Kilograms

question 18

True/False

Suppose the extra cost of producing an extra million kilograms of french fries is $1 million.Then, McCain Foods Ltd.should make the extra french fries if they generate additional revenue of $1 million.

---

Definitions:

Factor Prices

Prices paid for the use of factors of production, such as labor, land, and capital, important in understanding cost structures and economic value added.

Production Function

An economic model that describes the relationship between inputs used in production and the resulting output.

Average Cost

The total cost of production divided by the number of goods produced, also known as cost per unit.

Copper

A reddish-brown, malleable, ductile metallic element with high electrical and thermal conductivity, used in many alloys and as electrical conductors.