​A Manager Invests $400,000 in a Technology That Should Reduce

question 17

Multiple Choice

​A manager invests $400,000 in a technology that should reduce the overall costs of production.The company managed to reduce their cost per unit from $2 to $1.85.All else equal,if the firm continues its production in the same economic environment,the firms accounting profits should

• A)​increase
• B)decrease
• C)stay the same
• D)​does not affect profits

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Definitions:

Operations

Flexible, reversible mental manipulations of objects, in which objects can be mentally transformed and then returned to their original states.

Precausal Thinking

A type of reasoning typical in early childhood where logic is not yet developed, leading to conclusions that don't follow logically from their premises.

Transductive Reasoning

A type of reasoning, especially noted in young children, where individuals make inferences from one specific event to another, often without understanding the underlying causal relationships.

Three Mountains Task

A cognitive development test used to assess a child’s ability to recognize different perspectives and viewpoints.