Author Question: Marginal cost is the one more unit of a good and of the good increases. A) ... (Read 55 times)

Caiter2013 · **on:** Jun 29, 2018

Marginal cost is the ________ one more unit of a good and ________ of the good increases.

A) opportunity cost of producing; increases as production
B) opportunity cost of producing; decreases as production
C) price that must be paid to consume; increases as consumption
D) price that must be paid to consume; decreases as consumption

Question 2

Refer to the scenario above. If Molly wins the auction by using her optimal bidding strategy, she will earn a surplus of ________.

A) 0
B) 50
C) 14
D) 25