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Pavlov's Dog Salivates When the Red Light Is On, but Not

question 82

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Pavlov's dog salivates when the red light is on, but not when the green light is on. Skinner's cat runs away from barking dogs, but snuggles with relaxed dogs. Which of the following terms describes both of these behaviour patterns?


Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the contribution of sales to covering fixed expenses.

Machine Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead to products.

Theory of Constraints

A management paradigm that focuses on identifying and addressing the most significant limiting factor (constraint) that hinders achieving a goal, and systematically improving that constraint until it is no longer the limiting factor.

Contribution Margin

Contribution margin is the amount by which a product's sales price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

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