A Competitive Firm Will Exit an Industry in the Long

question 47

True/False

A competitive firm will exit an industry in the long run if the market price falls below the firm's break-even price.

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Definitions:

Operant Behavior

Operant behavior is a type of learning where behavior is controlled by consequences, including reinforcements and punishments.

Continual Reinforcement

A reinforcement schedule in which a behavior is reinforced every time it occurs, leading to rapid learning.

Flavor Aversions

The learned avoidance of a particular food or taste after a negative experience, associating it with illness or discomfort.

Organisms

Living beings that carry out essential life processes such as growth, reproduction, and metabolism.