You Have Just Purchased a Car for $20,000 and Realized

question 194

Multiple Choice

You have just purchased a car for $20,000 and realized that you still have to pay for insurance,licence,monthly parking and gasoline.The marginal cost of driving an additional kilometre is the additional money that you have to spend on

• A) insurance,licence,monthly parking and gasoline.
• B) insurance,licence,monthly parking and gasoline plus the $20,000 purchase price of the car.
• C) insurance and licence.
• D) monthly parking and gasoline.
• E) gasolinE.

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Definitions:

MP/P

The ratio of marginal product to price, often used to optimize production levels in economic analysis.

Factor Markets

The venues where services of the factors of production, such as labor, capital, and land, are bought and sold.

Profit-Maximizing

The process or strategy of adjusting operations, production, and sales to achieve the highest possible profit.

Combination of L and C

A concept relating to electrical engineering, where L represents inductance and C capacitance, forming a resonant circuit often used in radio frequency applications.