When Output Is 20, Fixed Costs Are $100 and Variable

question 1

Multiple Choice

When output is 20, fixed costs are $100 and variable costs are $400. When output rises to 21, fixed costs are $100 and variable costs are $450. This implies that the marginal cost of the last unit of output equals:

• A) $25.
• B) $50.
• C) $500.
• D) $550.

---

Definitions:

Approach-Avoidance Conflict

A psychological conflict that occurs when a goal or situation has both positive and negative aspects, making the individual want to approach and avoid it at the same time.

Multiple Approach-Avoidance

Multiple approach-avoidance involves conflict situations where an individual faces several options, each with both appealing and adverse aspects.

General Adaptation Syndrome

A model that describes the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Adrenaline

A hormone and neurotransmitter involved in the fight-or-flight response, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.