Average Fixed Cost

question 93

Multiple Choice

Average fixed cost

• A)equals marginal cost when average total cost is at its minimum.
• B)may be found for any output by adding average variable cost and average total cost.
• C)graphs as a U-shaped curve.
• D)declines continually as output increases.

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Definitions:

Representativeness Heuristic

Bases a decision on similarities between the situation at hand and stereotypes of similar occurrences.

Stereotypes

Oversimplified and generalized beliefs about a group of people that often do not reflect reality.

Programmed Decisions

Decisions that are made following established guidelines or procedures, typically for routine and recurring situations.

Spotlight Questions

Expose a decision to public scrutiny and full transparency.