The National Institute of Child Health and Human Development (NICHD)

question 518

Multiple Choice

The National Institute of Child Health and Human Development (NICHD) has conducted the most comprehensive research project to date on the effects of out-of-home care on development. They have found that children attending high quality out-of-home care

• A)were more insecurely attached
• B)were more sociable than stay-at-home children
• C)had a slight delay in cognitive development
• D)were not appreciably different in terms of attachment, or social and cognitive development

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Definitions:

MC = ATC

The condition where marginal cost equals average total cost, often used to identify the point of minimum average cost in the short run.

Zero Profits

A situation where a company's total revenues equal its total costs, meaning it is breaking even and not generating any profit.

P = MC

An equation that states that the price (P) of a product is equal to its marginal cost (MC), indicating the point at which the production of one more unit of a good or service is exactly covered by the sale price, often used in the context of perfect competition markets.

MC > ATC

Denotes a situation in which the marginal cost of producing an additional unit of a good is greater than the average total cost, implying that producing more of the good will increase the per unit cost.