Author Question: The shares of the economic value of a particular transaction that accrues to the seller and the ... (Read 42 times)

Garrulous · **on:** Jun 30, 2018

The shares of the economic value of a particular transaction that accrues to the seller and the buyer depend on:
a. the buyer's opportunity cost.
b. the relative bargaining powers of the two parties.
c. the cost of production incurred by the seller while producing the good.
d. the lobbying techniques adopted by the two parties.

Question 2

If the average total cost of producing 2 pounds of cheese is 4 and the average total cost of producing 3 pounds of cheese is 4.2, then the marginal cost of producing third pound of cheese is equal to:
a. 4.2.
b. 8.
c. 4.5.
d. 4.6.
e. 4.1.