Suppose a Firm Is Producing 100 Units of Output,incurring a Total

question 41

Multiple Choice

Suppose a firm is producing 100 units of output,incurring a total cost of $10 000 and total variable cost of $6000.It can be concluded that average fixed cost is

• A)$40.
• B)$60.
• C)$100.
• D)$160.
• E)$4000.

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Definitions:

Permanent Change

An alteration or modification that is lasting and not reversible.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through experience or instruction.

Generalization

In operant conditioning, the tendency to make the learned response to a stimulus similar to that for which the response was originally reinforced.

Unconditioned Stimulus

An unconditioned stimulus is a stimulus that naturally triggers a response without the need for prior learning.