The Marginal Cost of a Good or Service

question 287

Multiple Choice

The marginal cost of a good or service

• A) can be calculated from the marginal benefit of that good or service.
• B) decreases as more of the good or service is produced.
• C) can be derived from the production possibilities frontier.
• D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping.
• E) None of the above answers are correct.

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Definitions:

Random Sample

A subset of individuals chosen from a larger population, where each individual has an equal chance of being selected, used to infer population characteristics.

Small Bag

A diminutive container used for carrying personal items or purchases, typically hand-held or shoulder-mounted.

Large-Sample Z

A statistical method used to approximate the significance of difference between means, applicable when sample size is large and variances are known or assumed to be equal.

Corresponding P-Value

The probability of obtaining a test statistic at least as extreme as the one that was actually observed, assuming that the null hypothesis is true.