Oil Is an Input Used to Produce Gasoline

question 58

Multiple Choice

Oil is an input used to produce gasoline.An increase in the price of oil would be represented by

• A) A leftward shift of the supply curve for gasoline
• B) A rightward shift of the supply curve for gasoline
• C) A movement up and to the right along the supply curve for gasoline
• D) A movement down and to the left along the supply curve for gasoline

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Definitions:

Output

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

Monopolist

A monopolist is a single seller in a market who has significant control over the supply of a product or service, and thus can influence prices and market conditions.

Marginal Revenue

This is the increase in revenue that results from the sale of an additional unit of a product.

Marginal Cost

The change in total production cost that arises when the quantity produced is incremented by one unit.