Cree Markets LED (Light-Emitting Diode)bulbs That Replace the Traditional Incandescent

question 312

Multiple Choice

Cree markets LED (light-emitting diode) bulbs that replace the traditional incandescent bulb.A Cree LED bulb consumes 85 percent less energy and lasts for 25,000 hours.Cree is an example of

• A)a cooperative.
• B)an industry.
• C)a nonprofit organization.
• D)a business firm.
• E)a government agency.

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Definitions:

MC

Short for Marginal Cost, it is the change in total cost that arises when the quantity produced is incremented by one unit; it is the cost of producing one more unit of a good.

AVC

Average Variable Cost, the cost of labor or material that changes with the level of output or production.

ATC

Average Total Cost, which is the total cost divided by the quantity of output produced, representing the per unit cost of production.

Diminishing Returns

A rule which posits that when investment in a specific sector grows, the profit rate from that investment will not continue to rise past a certain threshold if all other factors are kept unchanged.