The Uncontrollable Future Events That Can Affect the Outcome of a Decision

question 42

Multiple Choice

The uncontrollable future events that can affect the outcome of a decision are known as

• A)alternatives
• B)decision outcome
• C)payoff
• D)states of nature

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Definitions:

Average Fixed Cost

The fixed costs (costs that do not vary with output) divided by the quantity of output produced.

Marginal Cost

The expense addition due to the manufacture of one more product or service unit.

Average Variable Cost

The total variable costs (e.g., materials, labor) divided by the quantity of output produced, representing the variable cost per unit.

Marginal Cost

The hike in cost associated with the creation of an extra unit of a good or service.