If the Market Mechanism Is Efficient, the Marginal Cost Accurately

question 132

True/False

If the market mechanism is efficient, the marginal cost accurately measures the opportunity cost of a good or service.

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Definitions:

Interest Rate

The portion of a loan assessed as interest to the borrower, typically described as an annual rate of the loan's remaining balance.

Payment

The transfer of money, goods, or services in exchange for a product, service, or to fulfill an obligation.

Annual Interest Rate

The percentage of a sum of money charged for its use per year.

Double

To increase or become twice as much in size, amount, or number.