Production Costs Are Likely to Rise After an Average-Cost Pricing

question 415

Multiple Choice

Production costs are likely to rise after an average-cost pricing policy is mandated because the monopolist will

• A) increase output.
• B) decrease output.
• C) engage in new and inventive production methods.
• D) have no incentive to control costs.

---

Definitions:

Self-esteem

A person's personal judgment of their own value, including their self-view and feelings like victory, sadness, self-respect, and embarrassment.

Cognitively Busy

A state of mind characterized by being engaged in high levels of mental activity, reducing capacity for processing additional information.

Cognitive Control

The ability of individuals to regulate their thoughts, emotions, and actions through mental processes, enabling goal-directed behavior.

Aroused

A state of heightened physiological and psychological activity, including alertness and emotional intensity.