Moving along a PPF, marginal cost is
A) the cost of producing the first unit of a good or service.
B) the total cost, less the production of the other good or service.
C) greater than the opportunity cost.
D) equal to the opportunity cost of producing one more unit of a good or service.
Question 2
When the price of a good is
A) below the equilibrium price, quantity supplied exceeds quantity demanded and price rises.
B) below the equilibrium price, quantity demanded exceeds quantity supplied and price falls.
C) above the equilibrium price, quantity supplied exceeds quantity demanded and price falls.
D) above the equilibrium price, quantity demanded exceeds quantity supplied and price rises.
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