Managers of a Firm Think at the Margin and Make

question 164

Multiple Choice

Managers of a firm think at the margin and make incremental adjustments to the level of production.For the managers to be satisfied with the correct level of production,what must result

• A)average variable cost exceeds marginal cost
• B)total cost is less than average revenue
• C)costs are minimized
• D)profit is maximized

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Definitions:

Encoding Specificity

A principle stating that the recall of information is improved when the conditions during retrieval are similar to the conditions during encoding.

Retrieval Cues

Stimuli or prompts that help in the recall of information stored in memory.

Infant Amnesia

The phenomenon in which older children and adults are unable to recall memories from the first few years of life, theorized to be due to the development of the hippocampus and other memory-related brain structures.

Explicit Memory Tests

Assessments that measure the recall of specific information, requiring conscious effort to retrieve memories.