In 2008, Precision Pattern Interiors, Which Makes High-End Aircraft Interiors

question 256

Multiple Choice

In 2008, Precision Pattern Interiors, which makes high-end aircraft interiors, began a $1 million renovation of a building at the Hutchinson Air Base Industrial Tract south of Yoder, Kansas. The company also planned to add some $400,000 in new equipment and triple its Yoder work force. Why would the long run decisions be riskier than the short run decisions?

• A) because the firm has to live with the long run decisions for a long time
• B) because it is easier to sell the equipment than it is to lay off employees
• C) because the firm has to raise prices to purchase equipment
• D) because employees will be upset

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Definitions:

Higher-Order Conditioning

A process in classical conditioning where a conditioned stimulus is paired with a new neutral stimulus, creating a second, often weaker, conditioned response.

Spontaneous Recovery

The return of a previously eliminated conditioned response following a break from being exposed to the conditioned stimulus.

Avoidance

A behavior aimed at preventing unpleasant situations or outcomes.

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus that was conditioned originally.