Use the following to answer question(s): Markets and Efficiency

-(Exhibit: Markets and Efficiency) What is the marginal cost of an extra pound of apples to a producer in Panel(a)?
A) It is the value that must be given up to produce an extra pound of apples.
B) It is greater than the price.
C) It must be less than the price.
D) It is the cost of the least satisfactory apples.

Question

Use the following to answer question(s): Markets and Efficiency
 
-(Exhibit: Markets and Efficiency) What is the marginal cost of an extra pound of apples to a producer in Panel(a)?
A) It is the value that must be given up to produce an extra pound of apples. 
B) It is greater than the price. 
C) It must be less than the price. 
D) It is the cost of the least satisfactory apples.

Quizplus · Accepted Answer

The marginal cost of an extra pound of apples to a producer in Panel (a) is the cost of producing that extra pound of apples, which is the value that must be given up to produce it. This is because the graph shows that as the quantity of apples produced increases, the cost of producing each additional pound of apples increases, indicating that resources become increasingly scarce and more costly to obtain. Therefore, the marginal cost curve represents the additional cost incurred by the producer for each additional unit of output.

Use the Following to Answer Question(s): Markets and Efficiency