Average Total Cost of Producing 100 Units of Output Is

question 253

True/False

Average total cost of producing 100 units of output is $5. If the marginal cost of producing the 101st unit is $6, then average total cost of 101 units is less than $5.

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Definitions:

Credibility

The quality or attribute of being believable or worthy of trust based on one's reliability, expertise, and honesty.

Trustworthiness

The ability to be relied on as honest or truthful.

Inoculation Theory

A psychological theory suggesting that exposure to weakened forms of an argument increases later resistance to that argument, similar to how exposure to a virus can create immunity.

Cognitive Dissonance

The psychological discomfort experienced when holding two or more conflicting beliefs, values, or attitudes simultaneously.