Which of the Following Is a Correct Statement

question 30

Multiple Choice

Which of the following is a correct statement?

• A) The lower the marginal cost, the higher the profit-maximizing price.
• B) The lower the average cost, the higher the profit-maximizing price.
• C) The less elastic the demand, the higher the profit-maximizing markup.
• D) The more elastic the demand, the higher the profit-maximizing markup.

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Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant or repetitive stimuli over time.

Signal-Detection Theory

A means to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information in the presence of uncertainty.

Just Noticeable Difference

The smallest change in intensity of a stimulus that can be detected by the sensory system.

Absolute Threshold

The minimum stimulus intensity required to be detectable by the senses.