Suppose a Firm Increases Output by One Unit

question 158

Multiple Choice

Suppose a firm increases output by one unit.Which of the following statements is true?

• A)total cost will increase by an amount equal to average variable cost
• B)total cost will increase by an amount equal to the marginal cost
• C)variable cost will increase by an amount equal to marginal cost
• D)average fixed cost will stay constant

Understand the development and practice of virtuous character according to Aristotle.

Differentiate between the views of different philosophers on virtue and ethics.

Identify the components of a good life according to Aristotle.

Understand the importance of practical wisdom in applying virtue ethics.

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Definitions:

Consumer's Income

The total amount of money earned by a consumer, determining their purchasing power and affecting their demand for goods and services.

Corner Solution

In optimization problems, a situation where the optimal choice for a variable is at the limit or bound of its possible values, rather than in the interior of the choice set.

MRS

The speed at which a consumer is prepared to exchange one product for another while keeping the same degree of happiness or utility.

Travel

The act of moving from one place to another, which can be for various purposes such as leisure, business, or exploration.