When There Is Dissaving

question 217

Multiple Choice

When there is dissaving

• A)both the APC and APS are positive.
• B)both the APC and APS are negative.
• C)the APC is positive and the APS is negative.
• D)the APC is negative and the APS is positive.

Distinguish between fixed, variable, and total costs in the context of production.

Recognize how the marginal product of labor impacts cost and production levels.

Understand the U-shape of the short-run average total cost curve and its causes.

Identify implications of changes in fixed and variable costs on overall production costs.

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Definitions:

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formation, experimentation, and conclusion.

Consistent Preferences

A situation where an individual's choices or tastes remain stable over time, showing a reliable pattern of preference.

Confirmation Bias

The habit of looking for, decoding, valuing, and recalling details that support one’s established views or conjectures.

Social Comparison

The process of evaluating oneself by comparison with others, often in terms of abilities or social standing.