A Firm Calculates That If It Produces One More Unit

question 111

Multiple Choice

A firm calculates that if it produces one more unit of output, the additional revenue will be less than the additional cost, the firm should:

• A) produce the additional unit and increase the price for all units sold
• B) shut down
• C) not produce the additional unit
• D) produce the additional unit

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Definitions:

Behavioural Tolerance

Through the principles of classical conditioning, cues in the environment can become conditioned stimuli to the effects of drug use. These cues cause the individual to anticipate the drug effects so that when the drug is actually administered the effects are diminished. Tolerance, or the need for a greater amount of drug for the same effect, is greatest when the conditioned environmental cues are present.

Severely Impaired

A condition in which an individual experiences significant barriers or limitations in physical or mental functioning.

Markers of Vulnerability

Indicators or signs that a person or population may be more susceptible to harm or adverse conditions due to various factors.