What Is One Strength of the Cross-Sectional Design

question 88

Multiple Choice

What is one strength of the cross-sectional design?

• A) It provides evidence about individual trends.
• B) It cannot be threatened by cohort effects.
• C) It is not plagued with dropout or practice effects.
• D) It permits longitudinal comparisons.

---

Definitions:

AVC (Average Variable Cost)

The total variable costs (costs that vary with the level of output) divided by the quantity of output produced, representing the variable cost per unit.

MC (Marginal Cost)

The rise in overall expenses associated with the production of an extra unit of a product or service.

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

Shutdown Point

The shutdown point is the level of output and price at which a business covers its variable costs; operating below this point would lead the firm to losses greater than its fixed costs.