Figure 10-10 -Refer to Figure 10-10. Which of the Following Statements Is

question 286

Multiple Choice

Figure 10-10
-Refer to Figure 10-10. Which of the following statements is correct?

• A)The private cost of producing the 160^th unit of output is $16.
• B)The social cost of producing the 160^th unit of output is $22.
• C)The external cost of producing the 160^th unit of output is $6.
• D)All of the above are correct.

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Definitions:

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.