A Classic Series of Experiments by Stanley Milgram Demonstrated the Profound

question 20

Multiple Choice

A classic series of experiments by Stanley Milgram demonstrated the profound effect of

• A)altruism.
• B)persuasion.
• C)obedience.
• D)attraction.

---

Definitions:

Variable Costs

Costs that change in proportion with the level of output or business activity, in contrast to fixed costs.

Profit per Unit

The difference between the selling price of a product and its cost per unit.

Profit-maximizing Output

The level of output at which a company achieves the highest possible profit, where marginal cost equals marginal revenue.

Marginal Cost

The cost escalation resulting from the creation of one additional unit of a good or service.