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Jake is staying in a large halfway house for juvenile substance abusers. Every time he successfully finishes his chores around the house, helps a roommate, or does any other appropriate behaviour, he receives a token. These tokens can be later exchanged for privileges such as staying out past curfew or going to a movie theatre. The goal of this system is to eventually have these positive behaviours
Long-run Equilibrium
A condition in the market where all firms in an industry are making zero economic profit, and there is an efficient allocation of resources.
Marginal Revenue
The additional income generated from selling one more unit of a product or service.
Marginal Cost
The rise in expense associated with manufacturing an extra unit of a product or service.
Shut Down
A short-term decision by a company to cease operations temporarily due to unfavorable market conditions or to minimize losses when variable costs exceed total revenues.
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