If the 15th Unit of Output Has a Marginal Cost

question 292

Multiple Choice

If the 15th unit of output has a marginal cost of $29.50 and the average cost of producing 14 units of output is $30.23, what will happen to the average cost of production if the 15th unit is produced?

• A)Average cost increases as more is produced.
• B)Average cost will fall.
• C)Average cost could increase or decrease depending on what happens to variable cost.
• D)Average cost could increase or decrease depending on what happens to fixed cost.

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Definitions:

Practicality

When selecting a test, one of the cornerstones of test worthiness is practicality. Practical concerns include time, cost, format, readability, and ease of administration, scoring, and interpretation.

Group Format

A method of presenting or facilitating activities, treatments, or learning in a group setting rather than individually.

Individualized Tests

Tests tailored to assess specific abilities or characteristics of an individual, often used in educational or clinical settings.

Cross-Cultural Fairness

The principle that assessment tools and processes should be equally valid and fair across different cultural groups, minimizing bias.