The Slope of a Ray from the Origin to a Point

question 39

Multiple Choice

The slope of a ray from the origin to a point on the total cost curve is the

• A)average fixed cost of producing the corresponding level of output.
• B)average total cost of producing the corresponding level of output.
• C)marginal cost of producing the corresponding level of output.
• D)variable cost of producing the corresponding level of output.

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Definitions:

Opportunity Cost

The value of the next best alternative forgone as a result of making a decision, reflecting the trade-offs of choosing one option over another.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors, underpinning international trade.

Specialization

The practice of focusing on and becoming expert in a particular subject or skill, in economics, it refers to individuals or firms concentrating on the production of limited kinds of goods or services.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than others.