A Firm's Average Fixed Cost When Producing 2,000 Units of Output

question 157

Multiple Choice

A firm's average fixed cost when producing 2,000 units of output equals $10.When only 1,000 units of output are produced:

• A) AFC must still equal $10.
• B) AFC must equal $20.
• C) AFC must equal $5.
• D) marginal cost must equal $20.

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Definitions:

Infantile Amnesia

The inability of adults to recall autobiographical memories from the first few years of life, typically before the age of 3 or 4.

Conscious Memories

Memories that can be intentionally recalled, such as facts or events that one has consciously experienced and stored in memory.

Egocentrism

A cognitive bias involving an inability to differentiate between one's own perspective and someone else's perspective.

Imprinting

A form of learning occurring at a specific life stage that is rapid and apparently independent of the consequences of behavior.