Persons Who Join an Interest Group Because It Promises to Offer

question 39

Multiple Choice

Persons who join an interest group because it promises to offer them discounts on certain services are responding to

• A) monetary incentives.
• B) social incentives.
• C) relegated incentives.
• D) fixed incentives.
• E) idealist incentives.

---

Definitions:

Marginal Cost

The increase in cost that results from producing one additional unit of a good or service.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance, providing a base cost for operating a business.

Total Cost

The sum of all funds utilized in the production of goods or services, including both fixed and variable costs.

Marginal Cost

The rise in overall manufacturing expenses resulting from the creation of an extra unit.