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People Are Motivated to Impose Clear Definitions on Ambiguous Situations

question 177

Multiple Choice

People are motivated to impose clear definitions on ambiguous situations.All of the following processes EXCEPT ________ are used to resolve ambiguity of information.


Definitions:

Marginal Cost

The outgoings associated with the production of one more unit of a product or service.

Average Variable Cost

The total variable costs divided by the quantity of output produced; it varies with the level of output.

Long-Run Average Total Cost Curve

A graphical representation showing the relationship between output and average total cost when fixed cost has been chosen to minimize average total cost for each level of output.

Minimum

The lowest allowable or possible amount, level, or point.

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