One of the Interesting Findings of a Survey of Firm

question 90

Multiple Choice

One of the interesting findings of a survey of firm managers by Blinder et al.is that:

• A)the vast majority of firms pay considerable attention to marginal costs in making decisions about how much output to produce.
• B)the majority of respondents suggested that fixed costs are a relatively unimportant consideration when making output decisions.
• C)approximately 75 percent of respondents indicated that their marginal costs of production are rising over the relevant range of output.
• D)a significant percentage of respondents to the survey did not appear to understand the concept of marginal cost.

---

Definitions:

Main Effect

The direct influence of an independent variable on a dependent variable in an experiment, disregarding the effects of other variables.

Independent Variable

A variable that is manipulated by the researcher to observe its effect on the dependent variable in an experiment.

Factorial Designs

Experimental designs used to explore the effects of two or more variables at the same time, allowing for the analysis of interactions among variables.

Confounding Variables

Factors other than the independent variable that may cause a result, making it difficult to establish a clear causal relationship.