Question :
41) Marginal cost equals
A) the profitability derived from producing another : 1226523
41) Marginal cost equals
A) the profitability derived from producing another unit of output.
B) all the opportunity cost of producing the amount of output.
C) or exceeds the marginal benefit.
D) productive efficiency.
E) the opportunity cost of producing one more unit of output.
42) Marginal cost is the opportunity cost of producing
A) every unit possible.
B) zero units.
C) the first unit and only the first unit.
D) one more unit of a good or service.
E) None of the above answers is correct.
43) Moving ________ along the marginal cost curve, the ________.
A) upward; opportunity cost of one more unit increases
B) upward; marginal cost decreases
C) downward; marginal cost increases
D) upward; opportunity cost of one more unit does not change
E) downward; opportunity cost of one more unit does not change
44) The marginal cost of a good or service
A) can be calculated from the marginal benefit of that good or service.
B) decreases as more of the good or service is produced.
C) can be derived from the production possibilities frontier.
D) graphs as a positively sloped curve, so it cannot be derived from the production possibilities frontier, which is downward sloping.
E) None of the above answers are correct.
45) The marginal cost curves slope upward because of the principle of
A) decreasing marginal benefits.
B) increasing marginal cost.
C) increasing marginal benefits.
D) decreasing marginal cost.
E) decreasing total benefit.
46) The marginal cost curve is
A) downward sloping to reflect the bowed out PPF.
B) downward sloping as marginal benefits increase.
C) upward sloping because marginal cost falls as more of a good or service is produced.
D) upward sloping to reflect the increasing opportunity cost of producing one more unit.
E) U-shaped to reflect the bowed out PPF.
47) As more of a good is consumed, marginal benefit ________ and as more of a good is produced, marginal cost ________.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
E) does not change; does not change
48) Which of the following is necessary for allocative efficiency to be achieved?
A) Marginal benefit must be maximized.
B) Marginal cost must be minimized.
C) Marginal benefit must equal marginal cost.
D) The difference between marginal benefit and marginal cost must be maximized.
E) Production must be at a point inside the production possibilities frontier.
49) In order to efficiently allocate goods and services, we have to compare
A) total cost to total benefit.
B) total cost to price.
C) marginal benefit to price.
D) marginal cost to marginal benefit.
E) price to marginal cost.
50) To achieve allocative efficiency, one must compare the
A) marginal cost of a good to its opportunity cost.
B) opportunity cost to the attainable point on the production possibilities frontier.
C) marginal benefit of a good to its marginal cost.
D) marginal cost to the production efficiency cost.
E) point of production efficiency to the point of allocative efficiency.
