Assume That You Know the Following Cost Information About Fred's

question 121

Multiple Choice

Assume that you know the following cost information about Fred's widget company: Its fixed cost is $9,and its total variable cost is $6 for 1 unit; $11 for 2; $ 15 for 3; 20 for 4; and 26 for 5.Given the above information,

• A) the marginal cost of providing the second unit is $5.
• B) the total cost of producing 4 units is $29.
• C) the average total cost of producing five units is $7.
• D) all of the above are true.

---

Definitions:

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Evoked Responses

Electrical potentials recorded from the nervous system following presentation of a stimulus, used to assess sensory function and neural pathways.

Extinction

The process by which stimuli lose their ability to evoke learned responses because the events that had followed the stimuli no longer occur. The learned responses are said to be extinguished.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, aiming at increasing or decreasing specific behaviors.