Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the definition of Marginal Cost?
What is the definition of Marginal Cost?
- The total cost of producing all units of output.
- The extra cost of producing one more unit of output. (correct)
- The cost of producing the first unit of output.
- The average cost of producing all units of output.
When do marginal costs typically start to increase?
When do marginal costs typically start to increase?
- When the firm is producing at maximum capacity.
- When the cost of producing the next item is more than the cost of producing the previous item. (correct)
- When the firm is producing 10 units of output.
- When the firm is producing at minimum capacity.
What is the main goal of Productive Efficiency?
What is the main goal of Productive Efficiency?
- To produce the best quality of a good or service.
- To produce the most variety of goods or services.
- To produce the highest quantity of a good or service.
- To achieve the lowest production cost per unit. (correct)
What is the main goal of Allocative Efficiency?
What is the main goal of Allocative Efficiency?
Signup and view all the answers
What is the relationship between the cost of producing the next item and the cost of producing the previous item when marginal costs are increasing?
What is the relationship between the cost of producing the next item and the cost of producing the previous item when marginal costs are increasing?
Signup and view all the answers
