Jill's Cell Phone Rang During an Exam, and Other Students

question 66

Multiple Choice

Jill's cell phone rang during an exam, and other students in the class turned around and stared at her. The instructor took the opportunity to remind the class that all cell phones should be turned off and put away. Both the class and the instructor used the moment to perform:

• A) boundary maintenance
• B) a formal sanction
• C) an adaptive function
• D) a positive sanction

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Definitions:

MC > ATC

Denotes a situation in which the marginal cost of producing an additional unit of a good is greater than the average total cost, implying that producing more of the good will increase the per unit cost.

Positive Profits

When a company or business generates earnings that exceed its costs and expenses, resulting in a net gain.

Market Price

The prevailing rate at which a good or service is available for purchase or sale on the open market.

Profit-maximizing

The process by which a firm chooses its production level and pricing to achieve the highest possible profit given its cost structure and market demand.