If the Marginal Benefit Curve Is Linear and Downward Sloping

question 30

Multiple Choice

If the marginal benefit curve is linear and downward sloping and the marginal cost curve is linear and upward sloping, a decrease in the marginal cost that causes a downward shift of the curve will _________the profit- maximizing number of units undertaken.

• A)increase
• B)reduce by exactly half
• C)decrease
• D)not change

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Definitions:

Positive Reinforcement

A behavioral strategy that involves rewarding a behavior to increase the likelihood of that behavior being repeated.

Observational Learning

The process of acquiring new behaviors or knowledge by watching and imitating others.

Classical Conditioning

Modifying behavior by pairing a conditioned stimulus with an unconditioned stimulus to elicit an unconditioned response.

Respondent Conditioning

A form of learning in which a behavioral response is elicited by a previously neutral stimulus that has become associated with a meaningful stimulus.