What Is Always True at the Quantity at Which Average

question 91

Multiple Choice

What is always true at the quantity at which average total cost equals average revenue?

• A)economic profit is zero
• B)marginal cost equals marginal revenue
• C)economic profit is maximized
• D)revenue is maximized
• E)cost is minimized

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Definitions:

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is assessed based on how typical the object seems of the category.

Confirmation Bias

The inclination to seek out, comprehend, prioritize, and recall facts in a manner that corroborates one's established beliefs or conjectures.

Framing Effect

A cognitive bias where people decide on options based on whether the choices are presented with positive or negative connotations.

Confirmation Bias

A cognitive bias that influences individuals to favor information or interpretations that confirm their preexisting beliefs or hypotheses.