To Describe Preferences,economists Use the Concept of

question 56

Multiple Choice

To describe preferences,economists use the concept of

• A)opportunity cost.
• B)scarcity.
• C)marginal benefit.
• D)marginal cost.
• E)price.

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Definitions:

ATC (Average Total Cost)

The per unit cost of production, calculated by dividing the total cost by the quantity of output produced.

MC (Marginal Cost)

The additional expense associated with the production of one more unit of a product or service.

Take a Loss

To realize a financial loss on an investment or transaction, often as a result of selling assets for less than their purchase price.

Short Run

A period in economics during which at least one input (e.g., factory size) is fixed and cannot be changed.