-According to the Diagram in the Figure Above, What Is

question 409

Multiple Choice

-According to the diagram in the figure above, what is the marginal cost of producing the 3 millionth gallon of gasoline per month?

• A) 5 pounds of shrimp per gallon of gasoline
• B) 4 pounds of shrimp per gallon of gasoline
• C) 3 pounds of shrimp per gallon of gasoline
• D) 1 pound of shrimp per gallon of gasoline

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Definitions:

Baseball Game Ticket

A document or electronic card that grants the bearer entry to a baseball game.

Consumer Surplus

The distinction between the full amount consumers are willing and able to spend on a good or service and the actual sum paid.

Price Floor

A government or group-imposed price control or limit on how low a price can be charged for a product, above the equilibrium price.

Consumer Surplus

The discrepancy between the total price consumers are willing to pay for a service or good versus what they actually spend on it.