In a fixed-cost problem, choosing excessively large values for ...

[cabate]

In a fixed-cost problem, choosing excessively large values for the maximum production quantity will result in
 a. all reasonable levels of production.
  b. no production.
  c. no solution at all.
  d. possibly a slow solution procedure.

Question 2

As the sample size increases, the standard error of the mean ______________.
 Fill in the blank(s) with correct word

[taylorsonier]

Answer to Question 1

d
RATIONALE: In a fixed-cost problem, the value of the maximum production quantity M should be large enough to allow for all reasonable levels of production, but choosing values of M excessively large will slow the solution procedure.

Answer to Question 2

decreases
RATIONALE: As the sample size increases, the standard error of the mean decreases. This happens because the sample size appears in the denominator of the standard error calculation, so dividing by a larger number yields a smaller standard error.