If Marginal Benefit Is Greater Than Marginal Cost for the Production

question 77

True/False

If marginal benefit is greater than marginal cost for the production of cars, to reach the allocative efficient quantity of cars, the production of cars must be increased.

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Definitions:

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a reflexive or involuntary response without the need for prior learning.

Classical Conditioning

The educational practice of regularly associating two stimuli together; a response that starts out being elicited by the second stimulus is in time elicited by only the first stimulus.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Unconditioned Response

A spontaneous, innate response to a stimulus that happens without previous learning or conditioning.