As a Firm Produces More Units of a Good, Its

question 204

Multiple Choice

As a firm produces more units of a good, its

• A)fixed costs remain constant in the short run and its variable costs rise.
• B)variable costs decline in the short run and its fixed costs rise.
• C)fixed and variable costs remain constant in the short run.
• D)variable costs remain constant in the short run and its fixed costs fall.
• E)none of the above

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Definitions:

Pluralistic Ignorance

A psychological state where a majority of group members privately reject a norm, but assume incorrectly that most others accept it.

New Bar

a recently established establishment that serves alcoholic beverages and often other types of drinks and sometimes food.

Cooperating

The act of working together towards a common goal or purpose, often requiring compromise or collaboration.

Common Goal

An objective or purpose shared by multiple individuals or groups, aiming to achieve a mutual outcome.