The Costs and Revenues Associated with Two Alternatives Are Listed

question 23

Multiple Choice

The costs and revenues associated with two alternatives are listed below: $\begin{array}{lrc}&\text {Alternative 1}&\text {Alternative 2}\\\text { Projected revenue } & \$ 100,000& \$125,000 \\\text { Unit-level costs } & 20,000 & 30,000 \\\text { Batch-level costs } &20,000 & 25,000 \\\text { Croduct-level costs } &15,000 &15,000 \\\text { Tacility-level costs } &10,000 & 10,000\end{array}$ Which alternative should be selected based on this information?

• A) Alternative 2 because it has a higher profit.
• B) Alternative 2 because it has the same product- and facility-level costs.
• C) Alternative 1 because it has fewer unit-level costs.
• D) Alternative 1 because it has a higher profit.

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Definitions:

Extinction

In behavioral psychology, the process through which a conditioned response decreases in frequency and eventually disappears.

Omission Training

A behavior modification technique that involves removing a positive stimulus to decrease a behavior's frequency.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Applied Behavior Analysis

A systematic approach to understanding behavior and applying interventions based on principles of behaviorism, often used in educational and therapeutic settings to improve or modify behaviors.