You Observe That at Your Current Production of Lunch Boxes

question 38

Multiple Choice

You observe that at your current production of lunch boxes, the average total cost of producing lunch boxes is $5 and the marginal cost of producing lunch boxes is $2. What should always happen if you increase lunch box production?

• A) Marginal cost will rise.
• B) Marginal cost will fall.
• C) Average total cost will rise.
• D) Average total cost will fall.

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Definitions:

Classical Conditioning

A method of learning whereby a response originally produced by the second of two repeatedly associated stimuli is ultimately provoked by the first stimulus on its own.

Hypodermic Needle

A thin, hollow needle used for injecting substances into the body or extracting fluids from it.

Dependent

Relating to a person who relies on another for support, particularly in the context of mental or physical health.

Soldier's Disease

A term historically used to describe morphine addiction, especially among soldiers during and after the American Civil War.