Use the Following to Answer Questions

question 14

Multiple Choice

Use the following to answer questions:
Figure: Marginal Costs 1
-(Figure: Marginal Costs 1) This figure shows the production costs of two firms that produce steel beams. If these two firms represent total production in the industry, how should they allocate the production of 100 beams to minimize costs?

• A) Firm 2 should produce all of the output.
• B) Firm 1 should produce all of the output.
• C) Firm 1 should produce 50 beams, and Firm 2 should produce 50 beams.
• D) Both Firm 1 and Firm 2 should produce some output, but Firm 2 should produce more than Firm 1.

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Definitions:

Cognitive Ability

Refers to the capacity of the brain to process information, reason, remember, and relate objects and symbols to engage in abstract thinking and problem-solving.

Homo Naledi

A species of human ancestor discovered in South Africa, noted for its unique mix of primitive and modern traits.

Primitive Hominin Traits

Basic or ancestral characteristics exhibited by early human ancestors.

Evolved

Refers to the cumulative changes in heritable traits of a population over successive generations, leading to biodiversity.