Marginal Resource Cost Is

question 135

Multiple Choice

Marginal resource cost is

• A) the increase in total resource cost associated with the production of one more unit of output.
• B) the increase in total resource cost associated with the hire of one more unit of the resource.
• C) total resource cost divided by the number of inputs employed.
• D) the change in total revenue associated with the employment of one more unit of the resource.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is unattainable.

Tax Per Unit

A tax that is levied on a per unit basis, meaning for every unit of a good produced or sold, a certain amount of tax is paid.

Deadweight Loss

A reduction in economic effectiveness that happens when a good or service does not reach, or cannot reach, its equilibrium state.

Tax Per Unit

Tax per unit is a fixed amount of tax applied to a product or service, regardless of its price, which directly affects the supply curve by increasing production costs.