All Else Equal, If the Price of a Variable Input

question 43

True/False

All else equal, if the price of a variable input falls, managers should decrease the use of that input and increase the use of other inputs.

---

Definitions:

Social Learning Theory

A theory that suggests people learn from one another via observation, imitation, and modeling.

Higher Order Conditioning

A learning process whereby a stimulus that has been conditioned to produce a particular response is used in turn to condition a second stimulus to produce the same response.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response.

Shaping

A behavioral psychology technique that reinforces behavior closer and closer to a desired goal, used in teaching new behaviors.