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:

Internal States

Psychological conditions or feelings that arise from within an individual, such as emotions, moods, desires, or motivations.

Conscious Behaviors

Actions and responses that involve awareness and purposeful decision-making.

Association

A connection or linkage between two ideas, concepts, or events, often based on prior experience or learning.

Observational Learning

A learning process in which a person observes and models another's behavior, attitudes, or emotional expressions.