Sunk Costs

question 24

Multiple Choice

Sunk costs:

• A)will not affect any aspect of decision making by a competitive firm in the short run.
• B)are costs that can only be controlled by reducing labor input.
• C)affect the shutdown price in that higher sunk costs raise the shutdown price.
• D)do not affect the profit or losses of a firm.

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Definitions:

Continuous, Immediate Reinforcement

A method in behavioral psychology where a desired behavior is rewarded every time it occurs, without delay.

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior occurring in the future.

Negative Reinforcers

In behavioral psychology, an unpleasant stimulus that, when removed after a behavior, increases the frequency of that behavior.

Removal from

The act of taking something or someone away from a particular place, condition, or association.