Refer to the Following

question 93

Multiple Choice

Refer to the following:
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.

-When the firm uses 120 units of labor, what is average total cost at this output?

• A) $59
• B) $40
• C) $190
• D) $84
• E) $120

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Definitions:

Negative Reinforcer

A stimulus whose removal following a behavior increases the likelihood of that behavior being repeated in the future.

Secondary Reinforcer

A stimulus that gains its reinforcing power through its association with a primary reinforcer; not naturally rewarding.

Negative Reinforcement

A psychological principle where the removal of an adverse stimulus strengthens a behavior.

Behavior

Behavior refers to the actions or reactions of organisms or systems, usually in response to external stimuli, within their environment.