Whether the Firm Produces or Shuts Down in the Short

question 14

Multiple Choice

Whether the firm produces or shuts down in the short run, fixed cost is equal to

• A)average variable cost
• B)total cost
• C)sunk cost
• D)price
• E)marginal cost

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Definitions:

Stimulus

A stimulus is something that causes a response or reaction in an organism or in any of its parts.

Just Noticeable Difference

The smallest difference in stimulation that a person can detect 50% of the time, also known as the threshold of sensation.

Sensory Adaptation

The process by which sensory receptors change their sensitivity to a stimulus over time, often resulting in diminished sensitivity to a constant stimulus.

Constant Movement

Continuous physical activity or motion without stopping.