Students Who Talk Loudly with Each Other in Class

question 81

Multiple Choice

Students who talk loudly with each other in class

• A) create an externality because other students cannot follow the lecture as well.
• B) disturb nobody.
• C) benefit the other students in class because they engage in conversation.
• D) only create an externality if they talk about something unrelated to class.

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Definitions:

Marginal Cost

Marginal cost refers to the increase in total cost resulting from producing one additional unit of a good or service.

Total Revenues

The overall amount of income generated from the sale of goods or services before any expenses are subtracted.

Total Costs

The sum of all expenses (fixed and variable) incurred in the production of goods or services.

Long-Run Total Cost

The total cost incurred by a firm when all inputs, including both fixed and variable costs, are fully adjustable.