Although Capital Is a Variable Factor in the Long Run

question 79

Multiple Choice

Although capital is a variable factor in the long run, once chosen it becomes a fixed factor for a long time. A profit- maximizing firm must therefore select a method of production that is

• A) currently economically efficient.
• B) labour intensive, as labour is always a variable factor.
• C) currently economically efficient and sufficiently flexible to adapt to changing factor prices over time.
• D) technologically advanced beyond anything currently used.
• E) adaptable to wide ranges of output over time.

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Definitions:

Unconditioned Stimulus

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

Secondary Reinforcer

A stimulus that becomes reinforcing through its association with a primary reinforcer, such as money earning its value through its exchange for food or other needs.

Primary Reinforcer

A stimulus that is naturally rewarding and satisfying, such as food or water, which does not require learning to become desirable.

Negative Reinforcement

A process in behavioral psychology where a response is strengthened because it is followed by the removal of an unpleasant stimulus.