A6-Demand, Supply, Marginal costs, Marginal Benefit

Why does the marginal cost curve slope upward? A. Because most resources are equally adaptable to most goods. B. Because costs tend to rise at an rate faster than output due to inefficiencies. C. Because of a limited supply of labor to produce a good. D. Because of the Law of Demand

Because costs tend to rise at an rate faster than output due to inefficiencies.

As we consume more a a good: A. Marginal benefit decreases B. Marginal benefit stays the same C. No correct answers D. Marginal benefit increases

Marginal benefit decreases

Are producers willing to produce a product when the costs exceed the benefit? A. Yes, producers will produce any product they can sell B. No,they are losing money and have no incentive to produce C. No answers are correct D. Yes, if they can at least break even.

No,they are losing money and have no incentive to produce

What does a marginal cost curve show? A. The demand needed to produce one more unit of goods. B. The extra sales a producer gets from producing an one more unit of goods. C. The extra cost a seller incurs to produce one more unit of goods. D. The increased benefit of producing an extra unit of goods.

The extra cost a seller incurs to produce one more unit of goods.

The ideal market situation is: When costs outweigh the benefits When costs to suppliers and benefits to consumers are equal When benefits outweigh the costs no answers are correct

When costs to suppliers and benefits to consumers are equal

Another way of looking at a demand curve is A. the marginal benefit the consumer receives from consuming one more unit of a good B. the marginal cost of producing one more good. C. The ability to substitute one good for another. D. The ability of goods to complement each other.

the marginal benefit the consumer receives from consuming one more unit of a good

Is the demand curve simply a demand curve or also a marginal benefit curve? A. It is neither B. It is both C. No answers are correct D. You need separate curves for each

It is both

What is an individual marginal benefit curve? A curve that shows the additional costs of producing one more unit of a good. A curve that shows the benefit and costs of producing one additional unit of a good. None of the answers are correct A curve that shows the additional benefit a consumer receives by purchasing one additional unit of a good.

A curve that shows the additional benefit a consumer receives by purchasing one additional unit of a good.

Think of price as a signal; What kind of signal does it give to a market? A. If the price consumers are willing and able to pay is lower than marginal costs to produce, suppliers will produce the product.(X) B. If suppliers see that the price is too low, they will act to increase production C. no answers are correct. D. If the price consumers are willing and able to pay is higher than marginal costs to produce, suppliers will produce the product.

If the price consumers are willing and able to pay is higher than marginal costs to produce, suppliers will produce the product.