The Cost of Producing an Additional Unit of a Good

question 232

Multiple Choice

The cost of producing an additional unit of a good or service that falls on people other than the producer is

• A) the marginal cost.
• B) represented by the demand curve.
• C) represented by the supply curve.
• D) the marginal external cost.
• E) the marginal social cost.

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Definitions:

Estimated Regression Equation

An equation generated through regression analysis that predicts the dependent variable based on the values of independent variables.

Regression Equation

An equation derived from regression analysis that represents the statistical relationship between one or more predictor variables and the response variable.

Regression Model

A form of predictive modelling technique which investigates the relationship between a dependent (target) and independent variable(s) (predictor).

Correlation Model

A statistical technique used to understand the strength and direction of the relationship between two variables.