The Change in a Firm's Total Cost from Producing One

question 137

Multiple Choice

The change in a firm's total cost from producing one more unit of a good or service is the firm's

• A)explicit cost of production.
• B)marginal cost of production.
• C)average cost of production.
• D)implicit cost of production.

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Definitions:

MC

Marginal Cost represents the change in total cost that arises when the produced quantity of a good is incremented by one unit.

Perfect Competitor

A market situation where numerous buyers and sellers exist, products are identical, and no individual buyer or seller can influence the market price.

Concentration Ratio

An indicator of the percentage of an industry's market controlled by its biggest companies.

Leading Firms

Leading firms are companies at the forefront of their industries, often setting standards and trends for others to follow.