Refer to the Following

question 63

Multiple Choice

Refer to the following:
"At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987) . Five years ago, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal) .
-Holding all else equal, we can conclude that, over the past five years,

• A) Huffy's average variable cost decreased.
• B) Huffy's average variable cost increased.
• C) Huffy's marginal cost decreased.
• D) Huffy's marginal cost increased.
• E) both a and c

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Definitions:

Sensory Receptor Cells

Specialized cells that detect and respond to specific stimuli from the external or internal environment, converting them into electrical impulses.

Transduction

The process of converting one form of energy into another, especially in sensory systems where physical stimuli are converted into nerve signals.

Absolute Threshold

The minimum stimulus intensity that can be detected by a sensory system at least 50% of the time.

Signal Detection Theory

A theory predicting how and when we detect the presence of a faint stimulus (signal) amid background stimulation (noise). Assumes there is no single absolute threshold and that detection depends partly on a person’s experience, expectations, motivation, and alertness.