The Table Below Provides Information on Output Per Month and Short-

question 9

Multiple Choice

The table below provides information on output per month and short- run costs for a firm producing outdoor wooden lounge chairs. $$\begin{array}{l}\begin{array} { | l | l | l | } \hline \text { TFC } & \text { TVC } & \text { TC } \\\hline 200 & 200 & 400 \\\hline 200 & 220 & 420 \\\hline 200 & 240 & 440 \\\hline 200 & 260 & 460 \\\hline 200 & 350 & 550 \\\hline 200 & 810 & 1010 \\\hline\end{array}\\\text { TABLE 7- } 5\end{array}$$
-Refer to Table 7- 5. Given the information in the table about short- run costs, this firm would minimize the average variable cost of production when producing

• A) 20 chairs.
• B) 15 chairs.
• C) 30 chairs.
• D) 10 chairs.
• E) 25 chairs.

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Definitions:

Availability Heuristic

A cognitive bias where individuals rely on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Cognitive Biases

Misperceptions or misunderstandings that cause systematic errors. Most result either (1) from heuristics that are prone to systematic errors or (2) because the brain is attempting to solve a type of problem (such as a calculus problem) for which it was not evolutionarily evolved and for which it has little innate capability.

Media Coverage

The reporting and analysis of news and information by various media outlets, influencing public perception and awareness of events and issues.

Behavioral Economics

A field of economics that examines how psychological, social, cognitive, and emotional factors affect the economic decisions of individuals and institutions.