Marginal utility can be negative. zero. positive. Positive, negative or zero. Ma
ID: 1210783 • Letter: M
Question
Marginal utility can be negative. zero. positive. Positive, negative or zero. Maximizing the level of output for a given total cost of production is equivalent to producing the profit maximizing output level. is equivalent to minimizing cost for a given level of output. necessitates using only relatively low-priced inputs. will maximize total revenue. It is difficult to determine if foreign companies are selling their products for prices below their costs of production because the true costs of production are difficult to calculate. the firms have no legal obligation to reveal this information. costs are calculated in the firm's local currencies. domestic taxes increase the firms' costs but it is difficult to determine the incidence of these taxes. An explicit cost is defined as a cost that does not change as output changes. a nonmonetary opportunity cost. a cost that involves spending money. a nonmonetary accounting cost. When a firm produces more output using the same inputs or the same output using fewer inputs we say that the firm experiences an increase in demand experiences positive technological change. will hire more workers m order to produce mote output. is operating m the sbort run.Explanation / Answer
Q.22:
Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service.
It can be positive, negative or zero.
It is positive, when the consumption of an additional item increases the total utility.
It is negative, when the consumption of an additional item decreases the total utility.
The marginal utility at some point may fall to zero, when the total utility is at its maximum.
Q23:
A firm reaches profit maximizing output level if it maximizes the level of output for a given total cost of production.
Q.27:
Explicit cost is a cost that involves spending money.
It is a direct payment made during the course of business, such as wage, rent and materials.
Q28:
A firm experiences a positive technological change it can produce more output using the same inputs.