Which of the Following Is True About the Regulation of the Production

question 112

Multiple Choice

Which of the following is true about the regulation of the production and sale of vitamin and mineral supplements?

• A) There is no federal legislation regulating supplements.
• B) The FDA does not regulate all vitamin and mineral supplements closely.
• C) Americans can rest assured that the federal government will protect them from vitamin and mineral supplement overuse.
• D) Supplement companies are free to market their products with invalid and illegal claims.

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Definitions:

Average Total Cost

The cost of producing each unit, calculated by dividing the overall production expenses by the number of products made.

Marginal Cost

The added cost resulting from the manufacture of one more unit of a product or service.

Variable Input

A factor of production whose quantity can be changed easily and flexibly by a firm in the short run to adjust output levels.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.