At 20 Units of Output,the Slope of a Firm's Average

question 32

Multiple Choice

At 20 units of output,the slope of a firm's average cost curve is recorded as +1.5.Calculate the firm's average cost at this output level if its marginal cost is $300.

• A)$270
• B)$300
• C)$230
• D)$200

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Definitions:

Two-tail Test

A statistical test that considers the possibility of observing extreme outcomes in both tails of the distribution.

Nominal Data

Data categorized into discrete groups or categories that cannot be ranked or ordered.

Z-test

A technique in statistics for determining the distinction between the means of two large-sample populations with specified variances.

Chi-squared Test

A rephrased definition: A statistical test that measures the discrepancy between observed results and the results expected under a specific hypothesis, often used to assess goodness of fit or independence in categorical variables.