Use the Following to Answer Questions: Table: Two Firms -(Table: Two Firms) If Firm 1 and Firm 2 in

question 11

Multiple Choice

Use the following to answer questions: Table: Two Firms $$\begin{array} { c c c } \hline \text { Item } & \boldsymbol { M C } \text { of Firm 1 } & \boldsymbol { M C } \text { of Firm 2 } \\\text { Number } & & \$ 2.50 \\\hline \text { First } & \$ 5 & 5.00 \\\text { Second } & 10 & 7.50 \\\text { Third } & 15 & 10 \\\text { Fourth } & 20 & \\\hline\end{array}$$
-(Table: Two Firms) If Firm 1 and Firm 2 in this table are guided by the invisible hand, the total cost (ignore fixed costs) of producing a total of 3 units of output is:

• A) $25.
• B) $12.50.
• C) $5.
• D) $15.

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Definitions:

Limited-Capacity

Refers to the finite amount of information or cognitive resource that an individual can process at one time.

Atkinson And Shiffrin

A model of memory proposed by Richard Atkinson and Richard Shiffrin in 1968, describing three stages of memory: sensory memory, short-term memory, and long-term memory.

Automatic Processing

Cognitive activities that require little conscious thought or effort, often occurring without our awareness and capable of being performed simultaneously with other tasks.

Working Memory

A cognitive system with a limited capacity that is responsible for temporarily holding information available for processing, crucial for reasoning and the guidance of decision-making and behavior.