For a Price Taker,if the Price of a Variable Factor

question 57

Multiple Choice

For a price taker,if the price of a variable factor of production increases,

• A) total cost falls.
• B) the profit-maximizing level of output rises.
• C) price rises.
• D) marginal cost rises.
• E) marginal cost falls.

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Definitions:

Aversion Therapy

A form of psychological treatment in which an undesirable behavior is paired with an unpleasant stimulus to reduce the occurrence of the behavior.

Modeling

A learning process where individuals learn or adapt behaviors by observing others, also known as observational learning.

Reinforcement

Any event or stimulus that, when following a response, increases the probability that the response will occur again.

Token Economy

A system of behavior modification based on the systematic reinforcement of target behavior, where tokens that can be exchanged for various rewards are used as reinforcers.