UGA ECONOMICS 2100 FIRST AND SECOND
MODULE REVIEW SCRIPT 2026 FULL
ANSWERS GRADED A+
⩥ Measures the increase in total cost that arises from an additional unit
of production
Answer: Marginal Costs
⩥ Marginal Cost = ?
Answer: = change in Total Cost / change in Quantity
⩥ Marginal cost helps answer which question?
Answer: How much does it cost to produce an additional unit of output?
⩥ The quantity that minimizes average total cost in the ATC curve
Answer: Efficient scale
⩥ The MC curve crosses the ATC curve at which point?
Answer: the minimum (efficient scale)
⩥ (1) Whenever marginal cost is ____ than average total cost, average
total cost is _____.
, Answer: less; falling
⩥ (2) Whenever marginal cost is _____ than average total cost, average
total cost is _______.
Answer: greater; increasing
⩥ The perfectly competitive market has which outcomes?
Answer: 1. the actions of any single buyer or seller has a negligible
impact on the market price
2. each buyer or seller takes the market price as given
⩥ How can a perfectly competitive firm change its total revenue?
Answer: Firms can only change their level of output since they have no
control over market prices
⩥ In perfect competition, average revenue equals price of the good
Answer: Average Revenue = Total Revenue / Quantity = (Price x
Quantity) / Quantity = Price
⩥ The change in total revenue from an additional unit sold
= change in TR / change in Q
Answer: Marginal Revenue
MODULE REVIEW SCRIPT 2026 FULL
ANSWERS GRADED A+
⩥ Measures the increase in total cost that arises from an additional unit
of production
Answer: Marginal Costs
⩥ Marginal Cost = ?
Answer: = change in Total Cost / change in Quantity
⩥ Marginal cost helps answer which question?
Answer: How much does it cost to produce an additional unit of output?
⩥ The quantity that minimizes average total cost in the ATC curve
Answer: Efficient scale
⩥ The MC curve crosses the ATC curve at which point?
Answer: the minimum (efficient scale)
⩥ (1) Whenever marginal cost is ____ than average total cost, average
total cost is _____.
, Answer: less; falling
⩥ (2) Whenever marginal cost is _____ than average total cost, average
total cost is _______.
Answer: greater; increasing
⩥ The perfectly competitive market has which outcomes?
Answer: 1. the actions of any single buyer or seller has a negligible
impact on the market price
2. each buyer or seller takes the market price as given
⩥ How can a perfectly competitive firm change its total revenue?
Answer: Firms can only change their level of output since they have no
control over market prices
⩥ In perfect competition, average revenue equals price of the good
Answer: Average Revenue = Total Revenue / Quantity = (Price x
Quantity) / Quantity = Price
⩥ The change in total revenue from an additional unit sold
= change in TR / change in Q
Answer: Marginal Revenue
