The Key Assumption Required for Us to Use a Linear

question 163

Multiple Choice

The key assumption required for us to use a linear variable cost function of the form VC = bq is that:

• A) marginal cost must be constant and equal to b.
• B) marginal cost must be increasing at rate b.
• C) fixed costs must be zero.
• D) marginal cost is always greater than average variable cost.

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Definitions:

Androgyny

Androgyny is a state or condition in which an individual possesses both masculine and feminine characteristics, qualities, or traits.

Gender Typing

The process by which individuals are taught and learn the behaviors, interests, and abilities considered appropriate for their gender in their culture.

Primary Sex Characteristics

are the biological and physical traits directly involved in reproduction, such as the ovaries in females and testes in males.

Secondary Sex Characteristics

Physical features that appear during puberty which are not directly involved in reproduction, such as breast development in females and beard growth in males.