Thirsty Thelma Owns and Operates a Small Lemonade Stand

question 384

Multiple Choice

Thirsty Thelma owns and operates a small lemonade stand. When Thelma is producing a low quantity of lemonade she has few workers and her equipment is not being fully utilized. Because she can easily put her idle resources to use,

• A)the marginal cost of an extra worker is large.
• B)the marginal cost of one more glass of lemonade is smaller than if output were high.
• C)the marginal product of an extra worker is small.
• D)her lemonade stand is likely to be crowded with workers.

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Definitions:

Continuous Flow

A process operation where inputs (materials, energy, or information) are constantly fed into the system, and products or services are produced without interruption.

Flow

A mental state of operation in which a person performing an activity is fully immersed in a feeling of energized focus, full involvement, and enjoyment in the process of the activity.

Shaping

Shaping is a method of positive reinforcement in behavioral training where successive approximations toward a desired behavior are rewarded to teach a new behavior.

Reinforcement

A process in behavioral psychology used to increase the likelihood of a specific behavior by adding or removing stimuli following the behavior.