What Is Meant by the Term Economic Capacity

question 5

Multiple Choice

What is meant by the term economic capacity?

• A)An output level where the firm is physically unable to increase output.
• B)The output level where average variable cost is at a minimum.
• C)The output level where average total cost is at a minimum.
• D)Total fixed costs are at a minimum.

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Definitions:

Shaping

A method of positive reinforcement of behavior patterns in operant conditioning.

Simpler Response

A basic or more straightforward reaction or answer to a stimulus or question, often requiring less cognitive or emotional effort.

Operant Conditioning

An instructional process whereby the force behind a behavior is shaped by rewards or sanctions.

Shaping

A method of teaching new behaviors by reinforcing successive approximations toward a desired behavior.