What is the definition of the marginal cost of a good?

Question 23 options:

	It is decreasing whenever average total cost is decreasing.
	It is the addition to total cost from producing one more unit of output.
	It is always equal to average variable cost when the firm is maximizing profit.
	It is the difference between average total cost and average variable cost.

Question 24 (1 point)

Which of the following best describes economies of scale?

Question 24 options:

	They refer to the increase in output that results from the increased utilization of a single input.
	They pertain to the long run only.
	They imply that the average total cost curve will fall continuously as output increases in the short run.
	They are the result of a diminishing marginal product.

Question 25 (1 point)

Typically, what is the shape of the average total cost curve for a firm in the short run?

Question 25 options:

	An average total cost curve is U-shaped.
	An average total cost curve slopes downward as output expands and approaches the X-axis when output is very large.
	An average total cost curve constantly slopes upward as output expands and eventually approaches an infinite dollar amount at high rates of output.
	An average total cost curve is a vertical line.

Question 26 (6 points)

Give one example each of Monopoly and Monopolistic Competition. (2 marks)

Give two similarities and two differences between Monopoly and Monopolistic Competion. (4 Marks)