Where Marginal Cost Is Less Than Average Total Cost

question 69

Multiple Choice

Where marginal cost is less than average total cost,

• A) opportunity cost must have been excluded from the calculation of marginal cost.
• B) marginal cost must be falling.
• C) marginal cost must be rising.
• D) marginal cost may be rising, falling, or constant.

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Definitions:

Yerkes-Dodson Law

A psychological principle that suggests there is an optimal level of arousal for performance, and both too little and too much can hinder performance.

Stress Levels

The degree or intensity of stress experienced by an individual or within a specific environment.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.

Psychological Well-being

A state of mental health where an individual experiences overall happiness, low levels of distress, and tends to function effectively in daily life.