Marginal Cost Is

question 104

Multiple Choice

Marginal cost is:

• A)the additional output a firm will get by employing one additional unit of input.
• B)the additional cost a firm will incur by producing one additional unit of output.
• C)the total cost a firm will incur by producing a given level of output.
• D)the costs that sit on the margin, that do not change regardless of the level of output.

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Definitions:

Growth

The increase in the economic output of a country or region, typically measured by the rise in the Gross Domestic Product (GDP), over time.

Inflation

The escalation rate of average prices for merchandise and services, causing a fall in the ability to purchase.

Aggregate Demand Curve

illustrates the total amount of goods and services that households, businesses, government, and foreign buyers collectively will desire at each possible price level.

Long Run Aggregate Supply

Represents the total output an economy can produce when using its resources in the most efficient way, without changing the price levels.