Marginal resource cost is defined as the
a. additional cost of producing an additional unit of output
b. change in resource employment required to increase the units of output produced
c. ratio of marginal revenue product to the market price of the output sold
d. additional cost of employing one additional unit of a resource
e. ratio of the change in total resource usage to the change in total resource cost
QUESTION 2Unpriced by-products of production or consumption that provide benefits to other consumers or other firms are known as
a. negative externalities
b. common pool benefits
c. positive externalities
d. private benefits
e. Coase by-products
QUESTION 3A profit-maximizing firm will hire an additional unit of a resource as long as the
a. marginal product of the resource is greater than the marginal resource cost
b. marginal product of the resource is less than the marginal resource cost
c. marginal revenue product of the resource is greater than the marginal resource cost
d. marginal revenue product of the resource is less than the marginal resource cost
e. price of the resource is less than the marginal resource cost
QUESTION 4If education creates positive externalities,
a. private markets provide less than the socially optimal quantity of education
b. private markets provide more than the socially optimal quantity of education
c. the marginal private benefit curve is higher than the marginal social benefit curve
d. the marginal private cost curve is higher than the marginal social cost curve
e. the government should impose a depletion tax
QUESTION 5Marginal resource cost is the
a. cost of hiring another unit of a resource
b. additional revenue generated by hiring one more unit of a resource
c. additional output generated by hiring one more unit of a resource
d. total cost of hiring a resource
e. average cost of hiring a resource
Quick Reply
