The Accompanying Table Shows Cost Data for a Firm That

question 275

Multiple Choice

The accompanying table shows cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $140, the firm will produce

• A)5 units and earn economic profits of $700.
• B)7 units and earn economic profits of $40.
• C)6 units and earn economic profits of $0.
• D)8 units and earn economic profits of $90.

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Definitions:

Reinforcers

Stimuli that increase the probability of a response when they follow that response, a key concept in behaviorism.

Respondent Behavior

A type of behavior that is elicited as an automatic response to a certain stimulus without the organism engaging in any conscious decision making.

Operant Behavior

A method of learning that employs rewards and punishments for behavior, emphasizing the strength of behaviors as a result of their consequences.

Reinforcement

The act of strengthening a response by adding a reward, thus increasing the likelihood that the response will be repeated.