Marginal Factor Cost Is Computed as

question 17

Multiple Choice

Marginal factor cost is computed as

• A) total cost of the resource/total amount of the resource being used.
• B) change in the total cost of the resource/total amount of the resource being used.
• C) total cost of the resource/change in the amount of the resource being used.
• D) change in the total cost of the resource/change in the amount of the resource being used.

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Definitions:

New Producers

Entities or individuals that have recently entered a market to offer goods or services.

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount received from the sale, indicating the benefit to producers.

Supply Curve

A visual diagram illustrating the correlation between a product's price and the amount of it suppliers are prepared to produce.

Equilibrium Price

The market price where the quantity of goods supplied is equal to the quantity of goods demanded.