A Cost or Benefit of the Production Process That Is

question 16

Multiple Choice

A cost or benefit of the production process that is not fully included in the price of the final market transaction when the product is sold is known as

• A)a public good
• B)an externality
• C)a monopoly
• D)none of the above

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Definitions:

Marginal Revenue

The income increment from disposing of an extra unit of a good or service.

Marginal Cost

The expenses involved in creating an additional unit of a product or service.

Maximize Profits

The process of increasing the difference between total revenues and total costs to achieve the highest possible earnings.

Output Level

The quantity of goods or services produced by a firm or industry within a specific time frame.