A Firm Is Currently Producing 100 Units of Output Per

question 177

True/False

A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the unit for $6. The firm should produce more than 100 units in order to maximize its profits (or minimize its losses).

---

Definitions:

Need For Achievement

A psychological trait that drives individuals to pursue and attain challenging goals, often with a significant emphasis on excellence and overcoming obstacles.

Homeostasis

The dynamic process through which biological systems maintain stability and optimal internal conditions despite external changes.

Drives

Basic, innate urges that motivate behavior, such as hunger or thirst.

Cognitive-Mediational Theory

A theory in psychology that proposes our emotions are determined by our appraisal of the stimulus, suggesting that thoughts mediate between stimuli and emotional responses.