Table 2-8 Table 2-8 Shows the Output Per Month of Month

question 107

Multiple Choice

Table 2-8
Table 2-8 shows the output per month of two people,Wilma and Betty.They can either devote their time to making marble statues or making marble benches.
-Refer to Table 2-8.What is Betty's opportunity cost of making a statue?

• A)1/2 bench
• B)2 benches
• C)1/3 bench
• D)1.4 statues

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Definitions:

Natural Monopoly

A market condition where a single firm can provide goods or services to an entire market at a lower cost than two or more companies could, due to high fixed costs and significant economies of scale.

Economies of Scale

The financial benefits gained by businesses as a result of their operating size, where the cost for each unit produced decreases as the scale of operation grows.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices over a specified period.

Marginal Cost

The amount spent on manufacturing one more unit of a product.