-In the Above Table, the Marginal Cost of the Fourth

question 311

Multiple Choice

-In the above table, the marginal cost of the fourth unit is

• A) $1.00.
• B) $2.00.
• C) $6.00.
• D) $24.00.

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Definitions:

Industry Expansion

The process of an industry growing in size, output, or number of participants, often through increased demand or technological advancements.

Decreasing-Cost Industry

An industry where the average cost of production decreases as the industry grows and output increases, often due to economies of scale.

Demand Occurs

The moment at which consumers are willing and able to purchase a good or service at a given price.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in the industry are earning only normal profits, with no incentive for entry or exit.