Whenever a Good Trades in a Competitive Market, the ________

question 76

Multiple Choice

Whenever a good trades in a competitive market, the ________ determines the value of the good.

• A) supply
• B) price
• C) demand
• D) cost

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Definitions:

Average Variable Cost

The total variable costs (costs that change with the level of output) of production divided by the quantity of output produced.

Marginal Cost

The financial outlay for producing an incremental unit of a product or service.

Short-Run Supply

The total quantity of a good or service that businesses are willing and able to sell at current prices in a short time period.

Implicit Cost

The opportunity costs that are not directly paid or seen but represent real costs to a business, such as the value of time or resources.