When Analyzing a Problem, If an Economist Is Attempting to Understand

question 77

Multiple Choice

When analyzing a problem, if an economist is attempting to understand what caused something to happen without considering whether or not the action was fair or just, the economist is thinking

• A)positively.
• B)negatively.
• C)normatively.
• D)justifiably.

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Definitions:

Variable Cost Per Unit

Variable cost per unit is the cost that varies with the level of output, calculated by dividing the total variable costs by the number of units produced.

Activity Level

The degree of operational intensity or volume of production in a business, often influencing costs and revenues.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes toward covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced.