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:

Stressor

An environmental or internal demand that requires an individual to adjust, cope, or adapt, potentially causing stress.

Fight-Or-Flight

A physiological reaction that occurs in response to a perceived harmful event, attack, or threat to survival, initiating either combat or escape responses.

Failing Grade

A grade that falls below the minimum standard of academic achievement, indicating that the material was not sufficiently learned or understood.

Serotonin

A neurotransmitter in the brain that affects mood, emotion, and sleep, often associated with feelings of well-being and happiness.