Mike,of Mike's Machines Has Hired a Consultant Who Informs Mike

question 72

Multiple Choice

Mike,of Mike's Machines has hired a consultant who informs Mike that since the total revenue from current operations exceeds total cost,he should consider increasing production of machines.Mike would be best off if he

• A) increases production of machines until total revenue is equal to total cost.
• B) increases production until net gains are equal to zero.
• C) maintains his current level of production so long as marginal revenue is equal to marginal cost.
• D) decreases his current level of production if marginal revenue is equal to marginal cost.

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Definitions:

Relaxation Training

A technique or therapy aimed at reducing tension and anxiety, often involving exercises such as deep breathing or progressive muscle relaxation.

Behaviour Therapists

Psychological professionals who use various techniques based on learning theories to help patients change unhealthy behaviors.

Operant Conditioning

A behavioral modification system where the level of a behavior is adjusted by providing incentives or enforcing consequences.

Classical Conditioning

The process of learning by the repeated association of two stimuli, where the response that was initially elicited by the second stimulus is eventually elicited by the first stimulus alone.