Having a Level-1 Diagram with No Level-0 Diagram Is an Example

question 50

Multiple Choice

Having a level-1 diagram with no level-0 diagram is an example of a:

• A) violation of completeness.
• B) violation of consistency.
• C) balancing error.
• D) structuring violation.
• E) cohesion error.

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Definitions:

Average Fixed Cost

The constant expenses associated with production, which remain unchanged regardless of output levels, divided by the output quantity.

Average Variable Cost

The total variable costs divided by the quantity of output produced, reflecting the cost for each unit excluding fixed costs.

MP

Short for Marginal Product, which is the additional output resulting from using one more unit of a particular input, holding other inputs constant.

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.