Average Cost Curves Decline Because

question 64

Multiple Choice

Average cost curves decline because

• A)fixed cost is spread out over larger amounts of production.
• B)it becomes cheaper to produce an infinite amount of goods.
• C)additional units of production are inferior.
• D)variable costs increase with each additional amount of production.

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Definitions:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response behavior.

Paired

Describes objects or concepts that are linked or associated with each other in some relationship or function.

Conditioned Stimulus

A formerly neutral signal that, when linked with the unconditioned stimulus, ultimately elicits a conditioned reaction.