If Two Firms Are Identical in All Respects Except That

question 171

Multiple Choice

If two firms are identical in all respects except that one has more of the fixed input capital than another,the total product curve for the firm with more capital:

• A)must equal the total product curve for the firm with less capital.
• B)will lie above the total product curve for the firm with less capital.
• C)will lie below the total product curve for the firm with less capital.
• D)will show no diminishing marginal returns.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Classical Conditioning

A method of learning wherein two stimuli are continually coupled; over time, the reaction initially incited by the second stimulus comes to be incited by the first stimulus alone.

Acquisition

Acquisition in the context of psychology refers to the initial stage of learning when a response is first established or a new skill is begun to be acquired.

Classical Conditioning

Learning through the relationship between a naturally present stimulus and one that comes from the environment.