Marginal Cost Equals

question 242

Multiple Choice

Marginal cost equals

• A) TC/Q.
• B) TVC/Q.
• C) TFC/Q.
• D) change in total cost/change in output.

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Definitions:

Substitution Effects

The change in consumption patterns due to a change in the relative prices of goods.

Normal Goods

Goods for which demand goes up when income is higher and for which demand goes down when income is lower.

Wage Rate

The standard amount of pay given to an employee for services rendered, typically expressed on a per hour basis.

Labor Supplied

Labor supplied refers to the total hours that workers are willing and able to work at a given wage rate.