The Opportunity Cost of Producing One More Unit of a Good

question 57

Multiple Choice

The opportunity cost of producing one more unit of a good or service is the

• A) marginal cost.
• B) marginal benefit.
• C) efficient level of production.
• D) market outcome.
• E) price of the good or service.

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Definitions:

Conditional Probability

The probability of an event given that another event already occurred. The conditional probability of A given B is P(A ∣ B) = P(A ∩ B)/P(B).

P(B | A)

The probability of event B occurring given that event A has already occurred, a concept in conditional probability.

P(A ∪ B)

The probability of the occurrence of at least one of two events, A or B, including the case where both events occur simultaneously.

Union Of Events

The set of outcomes that belong to either one or both of two or more events in probability theory.