Adam Is the Owner/operator of a Flower Shop

question 45

Multiple Choice

Adam is the owner/operator of a flower shop.Last year he earned $250,000 in total revenue.His explicit costs were $175,000 paid to his employees and suppliers (assume that this amount represents the total opportunity cost of these resources) .During the year he received three offers to work for other flower shops with the highest offer being $75,000 per year.Which of the following is true about Adam's accounting and economic profit?

• A)Accounting profit = $75,000;economic profit = $0.
• B)Accounting profit = $175,000;economic profit = $75,000.
• C)Accounting profit = $75,000;economic profit = negative $100,000.
• D)Accounting profit = $0;economic profit = negative $75,000.

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Definitions:

DRO Increasing-Interval Schedule

A DRO schedule that thins or fades the reinforcement by gradually increasing the length of the interval. If the specified interval passes without a target response occurring, reinforcement is delivered and the next interval can be increased by a certain amount of time. If the response does occur, however, the next interval stays the same.

Topographically Incompatible

Refers to behaviors that cannot occur simultaneously because the performance of one behavior physically restricts the other.

Differential Reinforcement

A technique in behavior therapy focusing on reinforcing desired behaviors while withholding reinforcement for undesired behaviors.

Target Behavior

A specific behavior selected for change or intervention, often identified in behavioral assessments.