Asked by
Yazdan Nikoo
on Dec 11, 2024Verified
The marginal cost of a good is
A) lower for competitive firms than for monopolists.
B) the cost of an additional unit.
C) equal to fixed cost at high output levels.
D) equal to variable cost when the firm is maximizing profit.
Marginal Cost
The cost increase associated with the production of an extra unit of a product or service.
Competitive Firms
Businesses that operate in a market environment where they vie with others to offer goods or services, focusing on price, quality, and innovation.
Monopolists
Individuals or entities that hold a monopoly, controlling the entire supply of a good or service in a particular market, eliminating competition.
- Understand the meanings and computations of marginal cost (MC) and average total cost (ATC).
Verified Answer
AL
Learning Objectives
- Understand the meanings and computations of marginal cost (MC) and average total cost (ATC).