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Suppose a Farmer Raising Beef Is Making a Normal Profit

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Suppose a farmer raising beef is making a normal profit. Then, because of a scare about mad cow disease, the demand for beef decreases drastically. What happens to the profits of the beef farmer in the short run and in the long run?


Definitions:

B. F. Skinner

An American psychologist and behaviorist best known for his work in developing the theory of operant conditioning.

A. Maslow

Refers to Abraham Maslow, an American psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

S. Freud

The Austrian neurologist Sigmund Freud founded the therapeutic approach of psychoanalysis, where psychopathological issues are addressed through a dialogue between the analyst and the patient.

Classical Conditioning

A learning process in which two stimuli are continuously coupled; the response, initially precipitated by the second stimulus, is ultimately precipitated by the first stimulus by itself.

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