A Fixed Cost That the Firm Cannot Avoid If It

question 38

Multiple Choice

A fixed cost that the firm cannot avoid if it shuts down and produces zero output must be:

• A)an accounting cost.
• B)a marginal cost.
• C)an equilibrium cost.
• D)a sunk cost.

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Definitions:

Skinner--operant Conditioning

An adaptation process in learning where the level of a behavior's intensity is recalibrated through reward systems or disciplinary actions.

Pavlov--classical Conditioning

A learning process discovered by Ivan Pavlov that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Piaget--cognitive Development

The theory proposed by Jean Piaget that describes how children develop logical thinking through a series of stages.

Retrieval Cues

Stimuli or signals that can trigger the recall of information from memory.