The Following Table Shows the Relationship Between Output and Costs

question 269

Multiple Choice

The following table shows the relationship between output and costs for two firms in the short run. Which of the following is correct?

• A) B has lower fixed costs than A
• B) A has higher per-unit costs than B at an output level of 1.
• C) A has greater marginal costs than B at each level of output.
• D) B starts experiencing diminishing marginal returns with the second unit of output.

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Definitions:

Left Ventricle

The chamber of the heart that receives oxygenated blood from the left atrium and pumps it out to the body through the aorta.

Diastolic Pressure

The blood pressure measured when the heart's chambers are refilling with blood, representing the lowest pressure in the cardiovascular system during the cardiac cycle.

Hypothalamic Response

The reaction of the hypothalamus, a region of the brain, to stimuli, influencing processes such as temperature regulation, hunger, thirst, and stress.

Corticosteroids

A class of steroid hormones that are used in medicine to treat a wide range of conditions, including inflammation and autoimmune diseases.