If Rewards Are Mostly Based on Luck, the Incentive to Exert

question 20

True/False

If rewards are mostly based on luck, the incentive to exert effort will be low.

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Definitions:

ATC

Average Total Cost; the total cost divided by the quantity produced, representing the cost per unit of output.

AFC

Stands for Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced.

MC Curve

Marginal cost curve represents how the cost of producing one more unit of a good changes as production scales.

Market Quantity

The total amount of a good or service supplied and purchased in a market at a given price.