If ATC = $10, AVC = $6, AFC = $3

question 117

Multiple Choice

If ATC = $10, AVC = $6, AFC = $3 and MC = $5; then if output increased by one unit:

• A) MC will increase.
• B) MC will decrease.
• C) ATC will increase.
• D) MC may be increasing or decreasing.

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Definitions:

Participant Reactivity

The phenomenon in research where the behavior of study participants is altered simply because they are aware that they are being observed.

Observation Bias

Refers to the errors introduced into research or observation when researchers' expectations or preferences influence the outcome.

Reciprocal Determinism

A theory proposed by Albert Bandura which suggests that a person's behavior both influences and is influenced by personal factors and the social environment.

Cohort Effect

Changes in the characteristics of a group of people influenced by their shared age, experiences, or the period in which they were born.