Suppose a cigar manufacturer currently sells 1,500 cigars per week and makes a profit of $3,000 per week. the plant foreman observes, "although the last 500 cigars we produced and sold increased our revenue by $7,500 and our costs by $7,000, we are only making an overall profit of $3,000 per week so i think we need to cut back on production. using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 500 cigars?

Answer:

the correct answer is economics is a game without winners or losers.

explanation:

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

6x 2.54 is 15.24, answer is c

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