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

question 35

Multiple Choice

Assume that a firm's total cost of producing an output of 2,000 units is currently $20,000.If output increases to 2,500 units,total cost increases to $50,000 and the price of inputs and technology remain unchanged.What will be the effect on average total cost?

• A)Increase of $20
• B)Decrease of $10
• C)Increase of $10
• D)No change

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Definitions:

Uninvolved

A parenting style characterized by a lack of responsiveness to a child's needs and a general disengagement from their life.

Parents

The guardians responsible for raising and nurturing a child, which can include biological, adoptive, step, or foster parents.

Homogenous

Characterized by similarity or uniformity in structure, composition, or nature.

Cultural Context

Refers to the environment and social factors that influence the values, practices, and behaviors of individuals and communities.