Which of the Following Best Explains Why Most States Have

question 12

Multiple Choice

Which of the following best explains why most states have the legal drinking age set at 21 years old?

• A) At 21 years of age, most Americans consider a person an adult.
• B) College is completed, and employment has begun by 21 years of age.
• C) Most 21-year-olds are self-supporting and no longer dependent on parents.
• D) The alcohol-related death rate rose alarmingly when drinking age was lowered to 18 years.

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Definitions:

Average Variable Cost

The total variable cost per unit of output, calculated by dividing total variable costs by the quantity of output.

MR = MC

Marginal Revenue equals Marginal Cost; a condition used to determine the profit-maximizing level of output for a firm.

Profit-maximizing Quantity

The level of output at which a business realizes the greatest profit, where marginal cost equals marginal revenue.

Economic Loss

Occurs when the total cost of producing a good or service exceeds the revenue generated from its sale, leading to negative profitability.