Firms That Shut Down in the Short Run Are Unable

question 49

Multiple Choice

Firms that shut down in the short run are unable to avoid their:

• A) fixed costs
• B) sunk costs
• C) variable costs
• D) marginal cost

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Definitions:

Negative Reinforcement

A process in operant conditioning where a response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Swift Punishment

Immediate correction or discipline following an undesirable behavior, intended to discourage repetition of such behavior.

Conditioned Stimulus

A previously neutral stimulus that, after being paired with an unconditioned stimulus, eventually triggers a conditioned response.

Effective Punishment

A form of discipline that successfully reduces or eliminates undesirable behaviors, often by introducing a negative consequence in response to the behavior.