In the Following Figure, the First Panel Shows a Market

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-The marginal factor cost (MFC) is the:

A) value of the additional output that an extra unit of a resource can produce.
B) additional cost of employing an additional unit of a resource.
C) additional cost of producing an additional unit of output.
D) the ratio of the total fixed cost to the total cost of production.
E) ratio of total cost to the total amount of resources employed.

Correct Answer:

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