Two Students Are Taking a Physics Test

question 96

Multiple Choice

Two students are taking a physics test.The optimistic student expects to get an A,while the pessimistic student expects to get a C.When the test results are determined,it happens that they both received Bs.Which outcome is most likely?

• A)the optimistic student will be happy with her grade.
• B)the pessimistic student will be happy with her grade.
• C)The optimistic student will lower her expectations for the next test.
• D)The pessimistic student will raise her expectations for the next test.

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Definitions:

AVC (Average Variable Cost)

The cost of labor, materials, and other variable inputs divided by the quantity of output produced.

MC (Marginal Cost)

The increase in total production cost that comes from making or producing one additional unit of a product or service, a concept critical in economic theory for determining the optimal production level.

Shutdown Point

The level of production and price where a firm's total revenue just covers its variable costs, below which it would cease operations.

AVC (Average Variable Cost)

The total variable cost divided by the number of units produced, indicating the variable cost per unit.