Which of the Following Terms Refers to Knowledge Based on Customary

question 85

Multiple Choice

Which of the following terms refers to knowledge based on customary assumptions that may or may not be accurate?

• A) grounded thinking
• B) scientific thinking
• C) unscientific thinking
• D) groundless thinking

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Definitions:

Marginal Cost

The added expense required to produce one more unit of a product or service.

Fixed Cost

An expense that remains constant regardless of the volume of products or services manufactured or distributed.

Monopoly Profits

The excess profits earned by a monopoly as a result of its ability to set price above marginal costs due to lack of competition.

Duopoly

A market structure dominated by two firms, each of which has significant control over the market price.