The Following Table Shows the Costs and Benefit of Producing

question 103

Multiple Choice

The following table shows the costs and benefit of producing a commodity. Table 13.1

-According to Table 13.1,the external cost of producing 5 units of the output is:

• A)$5.
• B)$6.
• C)$10.
• D)$8.
• E)$4.

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Definitions:

Price Change

A shift in the cost at which goods or services are sold, either increasing or decreasing in amount.

Price Elastic

The degree to which the quantity demanded of a product changes in response to a change in its price.

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities.

Labor Substitutable

The concept that one form of labor can replace another in performing specific tasks or jobs, reflecting flexibility in the workforce.