The Additional Cost Resulting from Producing and Selling One Additional

question 35

Multiple Choice

The additional cost resulting from producing and selling one additional unit is called the

• A) marginal cost.
• B) common cost.
• C) opportunity cost.
• D) markup.

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Definitions:

Traffic Congestion

A condition on road networks that occurs as use increases, and is characterized by slower speeds, longer trip times, and increased vehicular queueing.

Express Lanes

Specifically designated traffic lanes designed to reduce congestion by allowing vehicles meeting certain criteria, such as carpooling or toll payment, to use a less congested lane.

Toll Roads

Highways or sections of highways for which users are required to pay a fee for access or passage.

Consumer Surplus

The discrepancy between what consumers are prepared and can afford to spend on a product or service versus what they end up paying.