A Firm Will Continue to Operate in the Long Run

question 49

Multiple Choice

A firm will continue to operate in the long run only if:

• A)it earns a rate of return that is higher than the normal rate of return.
• B)it earns a nonnegative economic profit.
• C)it makes a positive accounting profit.
• D)average cost exceeds price.
• E)the average variable cost exceeds price.

---

Definitions:

Classroom Conditioning

The process of using behavioral psychology principles to encourage learning and desirable behavior within a classroom setting.

Reinforce Behaviour

The process of encouraging or establishing a pattern of behavior by offering rewards or consequences.

Negative Reinforcement

A behavioral psychology principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated in the future.

Punishment

A consequence that reduces the likelihood of a behavior being repeated, often used in behavioral conditioning.