The Principle That a Firm Should Produce Up to the Point

question 159

Multiple Choice

The principle that a firm should produce up to the point where the marginal revenue from the sale of an extra unit of output is equal to the marginal cost of producing it is known as the

• A) output-maximizing rule.
• B) profit-maximizing rule.
• C) shut-down rule.
• D) break-even rule.

---

Definitions:

UCR

Unconditioned response, a natural and automatic reaction to an unconditioned stimulus without prior learning or conditioning.

CS

Short for Conditioned Stimulus, it is a term used in classical conditioning to denote a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually triggers a conditioned response.

Reinforced Schedule

A concept in operant conditioning that outlines how often a behavior is reinforced, influencing the frequency and predictability of the behavior.

Schedules of Reinforcement

The rules that determine how and when certain responses will be reinforced in operant conditioning.