Which of the Following Statements Is Correct

question 20

Multiple Choice

Which of the following statements is correct?

• A)In the short run, if a firm chooses to produce no output (i.e., shut down)its total costs of production will equal its total fixed costs.
• B)If a firm decides to shut down, its short-run total costs will equal 0.
• C)As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs.
• D)A firm minimizes its total costs of production when average variable cost is minimized.

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Definitions:

Familiar Task

An activity or job that an individual has experience with and can perform with ease due to previous exposure or practice.

Positive Reference Group

A group that individuals admire and wish to be like or be associated with, influencing their behavior and attitudes positively.

Weight-of-numbers Bias

A cognitive bias where the sheer amount of information or data points available influences the perception of an argument's strength.

Minority Influence

Social influence processes whereby numerical or power minorities change the attitudes of the majority.