The Below Figure Shows the Various Combinations of the Goods

question 19

Multiple Choice

The below figure shows the various combinations of the goods X and Y that yield different levels of utility.Figure 7.3

-Suppose that the total fixed cost of producing five sailboats is $4,000, total variable cost is $4,000, and the total cost of producing six sailboats is $10,000. The marginal cost of the sixth sailboat is:

• A)$2,000.
• B)$4,000.
• C)$8,000.
• D)$10,000.
• E)$6,000.

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Definitions:

Wage Rate

The amount of compensation paid for labor services per unit of time (e.g., hour, day, or month).

Rental Rate

The price paid for the temporary use of a good, service, or property expressed typically as a daily, monthly, or yearly rate.

Minimum Cost

The lowest possible expense incurred in the production of a good or the provision of a service.

Output Levels

The quantity of goods or services produced by a firm, industry, or economy in a given period.