So Long as a Firm Is Enjoying Increasing Marginal Returns,a

question 38

Multiple Choice

So long as a firm is enjoying increasing marginal returns,a one unit increase in output will cause marginal costs to ________ and total costs to ________.

• A)increase; increase
• B)decrease; increase
• C)increase; decrease
• D)decrease; decrease

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Definitions:

Reticular Formation

Midbrain area in which nuclei and fiber pathways are mixed, producing a netlike appearance; associated with sleep–wake behavior and behavioral arousal; also called the reticular activating system (RAS).

Sleep

A naturally recurring state of mind and body characterized by altered consciousness, relatively inhibited sensory activity, and inhibition of nearly all voluntary muscles.

Orienting Responses

The instinctive redirection of attention toward a new or important stimulus, often involving physical positioning toward the stimulus.

Superior and Inferior Colliculi

Paired structures in the midbrain involved in visual and auditory reflexes; the superior colliculi in processing visual information and inferior colliculi in processing auditory information.