Marginal Cost Is Equal to

question 60

Multiple Choice

Marginal cost is equal to

• A)total cost divided by output.
• B)the increase in total cost divided by the increase in output.
• C)the increase in total cost divided by the increase in labour input,given the amount of capital.
• D)total variable cost minus total fixed cost.
• E)the increase in total cost divided by the increase in variable cost.

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Definitions:

Market Power

The ability of a firm or group of firms to control prices or exclude competition within a market.

Influence Market Prices

The action or power of a factor to affect the prices in a market, which could be through supply, demand, or external factors.

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.

Neighbors

Individuals or entities located near one another, often used in the context of residential, geographic, or international proximity.