A Firm Can Always Increase Its Output by One Unit

question 58

Multiple Choice

A firm can always increase its output by one unit at a marginal cost of $10.Its marginal cost curve is

• A)a horizontal line.
• B)a vertical line.
• C)a ray with slope equal to 10.
• D)exactly one-tenth as steep as its total cost curve.

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Definitions:

Marginal Benefit

The extra pleasure or benefit derived from consuming an additional unit of a product or service.

Corporate Job

Employment within a company or organization that usually involves office-based work, specialized roles, and hierarchical positions.

Opportunity Cost

is the loss of potential gain from other alternatives when one alternative is chosen.

Rational Decisions

Choices made by individuals that align with their own self-interest and are based on an evaluation of the costs and benefits of the action.