Deciding to Pursue an Activity as Long as the Extra

question 189

Multiple Choice

Deciding to pursue an activity as long as the extra benefits are at least equal to the extra costs defines the

• A) cost-benefit principle.
• B) scarcity principle.
• C) No-Free-Lunch principle.
• D) marginal principle.
• E) extra principlE.

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Definitions:

Economic Profits

The excess of total revenue over total costs, including both explicit and implicit costs, in economics.

Market Supply

The total amount of a good or service that producers are willing and able to sell at varying price points, at a given time.

Long Run

An economic phase characterized by the variability of all production inputs and expenses.

Industry Supply Curve

It represents the total quantity of goods or services that producers in an industry are willing and able to supply at various price levels.