Jessica's Marginal Cost for Producing a Pitcher of Lemonade Is

question 20

Multiple Choice

Jessica's marginal cost for producing a pitcher of lemonade is $0.25. Therefore, $0.25 can also be called her:

• A)marginal revenue.
• B)equilibrium price.
• C)reservation price.
• D)producers surplus.

---

Definitions:

Supply Function

A mathematical relationship that depicts how the quantity of goods supplied by producers changes in response to different factors, such as price.

Factor Price

The price paid for the use of a factor of production, such as labor, land, or capital, in the production of goods and services.

Marginal Cost

Marginal cost refers to the increase in total cost resulting from producing one additional unit of a good or service.

Total Revenues

The overall amount of income generated from the sale of goods or services before any expenses are subtracted.