Suppose the Fixed Cost of Building a Nuclear Power Plant

question 9

Multiple Choice

Suppose the fixed cost of building a nuclear power plant is $1 billion. Suppose also that the only variable cost is the labor of Homer Simpson, and he earns $10 per hour. If the plant generates 1,000 kilowatts each hour, and has already generated 1 billion kilowatts, what can you say about the marginal cost of the next kilowatt?

• A) The marginal cost is falling.
• B) The marginal cost is equal to $.01.
• C) The marginal cost is equal to $1.01.
• D) The marginal cost is rising.

Know the provisions for testamentary gifts, their validity, and their fate in cases like the death of a beneficiary before the testator.

Understand the different types of powers of attorney and their roles in medical and financial decision-making.

Recognize the fundamental elements required for the creation and failure of trusts.

Comprehend the importance of advance health directives and living wills in medical decisions.

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Definitions:

Temperament

An individual's innate disposition or behavioral style and characteristic emotional response.

Personality

The combination of characteristics or qualities, including patterns of thought, feelings, and behaviors that make a person unique.

Reactive Autonomic Nervous System

Refers to the part of the autonomic nervous system that responds involuntarily to stress, causing physical reactions.

Emotional Stability

A personality trait that reflects the extent to which a person's mood and emotions are consistent and not prone to frequent fluctuations.