Mr Capps Recently Built a Dental Floss Factory in Montana

question 59

Multiple Choice

Mr. Capps recently built a dental floss factory in Montana. It cost $500,000 and is expected to last ten years. The plant can only be used to produce dental floss and will have no scrap value. When a recession occurs, the yearly revenue from the plant declines to $35,000, compared to costs of $25,000 just for the variable resources required to produce the current rate of output. Mr. Capps should

• A) shut down since he is experiencing economic losses (in other words, he will not get his $500,000 back).
• B) reduce the price of dental floss if his demand is inelastic in order to increase his revenue.
• C) raise the price of dental floss if his demand is elastic in order to increase his revenue.
• D) continue to operate since he is covering his variable costs and the cost of the plant is a sunk cost.

Recognize the importance of psychological therapy in treating physical illnesses such as cancer.

Explain the contribution of lifestyle factors, including smoking and diet, to health outcomes.

Understand psychoneuroimmunology and how psychological factors influence the immune system.

Articulate the significance of social support and religious involvement in promoting health and well-being.

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Definitions:

Cognitive Psychology

A division within psychology that explores how individuals think, perceive, remember, and learn, examining mental functions.

Applied Psychology

The branch of psychology focused on applying psychological principles and theories to solve real-world problems.

Organizational Psychology

A field of psychology that studies human behavior in work settings and applies psychological theories to organizations and their employees.

Clinical

Pertaining to the assessment and treatment of patients in medicine and psychology; often used within contexts involving medical and therapeutic settings.