Figure 3-1

question 73

Multiple Choice

Figure 3-1. Total cost = Fixed cost + (Variable Rate ´ Output)
Refer to Figure 3-1.In the cost formula above which element would be the intercept?

• A)fixed cost
• B)total cost
• C)output
• D)variable rate

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Definitions:

Endowment Effect

A cognitive bias that causes individuals to value an owned object higher than its market value.

Chronological Age

The actual age of an individual measured in years from the date of birth.

Mental Age

A concept used in intelligence testing that represents the intellectual age level an individual is functioning at, as compared to the average intellectual performance of individuals in their chronological age.

IQ

An abbreviation for Intelligence Quotient, a measure of a person's cognitive abilities and potential relative to their age group.