Consider the Short- Run and Long- Run Cost Curves for a Firm.If

question 3

Multiple Choice

Consider the short- run and long- run cost curves for a firm.If factor prices decrease,

• A)there will be no change in the cost curves in the long run.
• B)the firm will move down along both its long- run and short- run average cost curves.
• C)both the long- run and short- run average cost curves will shift downward.
• D)the firm will move down along its long- run average cost curve only.
• E)there will be a downward shift in the long- run average cost curve but not in the short- run average cost curve.

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Definitions:

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior by applying a stimulus after the behavior occurs.

Bobo Doll Studies

A series of experiments conducted by Albert Bandura that demonstrated that children could learn aggressive behaviors through the observation of adult models.

Aggressive

Behavior characterized by assertiveness, hostility, and possibly harm towards others, stemming from various motivational or environmental factors.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, coined by B.F. Skinner.