Assume That a Firm's Total Cost of Producing an Output

question 63

Multiple Choice

Assume that a firm's total cost of producing an output of 1,000 units is currently $20,000.If output increases to 2,000 units,total cost increases to $40,000 and the price of inputs and technology remain unchanged,calculate the change in average total cost.

• A)Increase of $20
• B)Decrease of $20
• C)Increase of $40
• D)No change

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Definitions:

Dominance Structuring

The organization of individuals within a group that establishes a hierarchy of power or influence.

Unwise Decision

A choice or judgment that is made without proper consideration of the consequences, often leading to negative outcomes.

Decision-Critical Attributes

Key factors or characteristics that are crucial to making an informed and effective decision in a given context.

Evaluating Options

The process of examining and comparing different choices to make the best decision.