0. Basic Principles of Economics

According to the graph, the marginal cost begins to increase when the producer makes which of the following decisions?

A high marginal propensity to consume implies which of the following?

Making rational decisions at the margin means that people:

Which of the following must be true if average variable costs are decreasing?

Increasing marginal cost of production explains which of the following economic phenomena?

The extra or additional revenue associated with the production of an additional unit of output is the:

According to the chart, what is the marginal cost of producing the second pie?

The basic difference between the short run and the long run in microeconomics is that:

Suppose a firm faces a linear demand curve given by P = a - bQ, where P is price, Q is quantity, a and b are positive constants. What is the formula for marginal revenue (MR) for this firm?

Which of the following best defines marginal cost?

An additional cost from selecting a certain course of action is known as a(n):

All else being equal, if the marginal cost of producing an additional unit exceeds the marginal benefit, what should a rational decision-maker do?

Refer to Table 13-3. If the total output with one worker is 10 units and with two workers is 18 units, what is the marginal product of the second worker?

The marginal product of a factor shows how much an additional unit of that factor adds to:

Which of the following options is NOT included in the marginal cost of a production decision?