If Fixed Cost Rises

question 61

Multiple Choice

If fixed cost rises,

• A)the profit-maximizing level of output would decrease.
• B)the profit-maximizing level of output would not change.
• C)marginal cost rises.
• D)variable cost falls.

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Definitions:

Stanley Schachter

An American psychologist best known for his development of the Two-Factor Theory of Emotion, which suggests that emotions are determined by physiological arousal and cognitive interpretation of that arousal.

Walter Cannon

An American physiologist known for his work on the fight or flight response and coining the term 'homeostasis.'

Amygdala Complex

A structure within the brain involved in processing emotions, emotional behavior, and motivation, particularly known for its role in fear responses.

Basolateral

Pertaining to the base and sides of a structure, often used in reference to specific areas of the brain, like the basolateral complex of the amygdala involved in emotion processing.