The Significance of the Minimum Point on the Average Variable

question 123

Multiple Choice

The significance of the minimum point on the average variable cost curve is that

• A)it is the profit-maximizing level
• B)it is the selling price
• C)it is the point of indifference between producing at a loss or shutting down
• D)if the firm produces one more unit, its AVC will be less than MC
• E)it shows the amount of total cost

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Definitions:

Social Scripts

Schemata or guidelines stored in the brain that dictate behavior in specific social situations, based on cultural expectations and norms.

Desensitization

This refers to the process by which individuals become less sensitive or react less intensely to repeated stimuli or emotional triggers.

Priming Aggressive Thoughts

A process by which exposure to certain stimuli can increase the likelihood of aggressive responses in individuals.

Mere Exposure Effect

The Mere Exposure Effect is a psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.