Table 2-8 Table 2-8 Shows the Output Per Month of Month

question 12

Multiple Choice

Table 2-8
Table 2-8 shows the output per month of two people,Wilma and Betty.They can either devote their time to making marble statues or making marble benches.
-Refer to Table 2-8.What is Wilma's opportunity cost of making a statue?

• A)1/3 of a bench
• B)3 benches
• C)6/7 of a statue
• D)1/2 of a bench

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Definitions:

ATC

Average Total Cost; the sum of all production costs divided by the quantity of output, representing the cost per unit including both fixed and variable costs.

Monopoly Power

The exclusive ability of a company to determine the price and production level of a product or service in the market.

Marginal Revenue

The gain in revenue resulting from the sale of one extra unit of a good or service.

Marginal Cost

The price of making an additional unit of a product or service.