If a Factory Has a Short-Run Capacity Constraint (E

question 80

Multiple Choice

If a factory has a short-run capacity constraint (e.g., an auto plant can only produce 800 cars per day at maximum capacity) , the marginal cost of production becomes ________ at the capacity constraint.

• A) infinite
• B) zero
• C) highly elastic
• D) less than the average variable cost

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Definitions:

Behavior Therapies

Psychological treatment approaches focusing on modifying observable behaviors and dealing with mental health disorders.

Cognitive Therapy

A form of psychotherapy that aims to change patterns of thinking or behavior that are problematic, thus altering emotional states and dealing with disorders.

Bipolar Disorder

A mental health condition marked by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Dodo Bird Verdict

A metaphor stemming from Alice in Wonderland and used in psychology to suggest that different forms of therapy are equally effective.