Firms Operating in Competitive Markets Produce Output Levels Where Marginal

question 102

Multiple Choice

Firms operating in competitive markets produce output levels where marginal revenue equals

• A)price.
• B)average revenue.
• C)total revenue divided by output.
• D)All of the above are correct.

Apply Premack’s principle in modifying behaviors by understanding the relationship between preferred and less preferred activities.

Understand how probability and deprivation influence an activity’s reinforcement value.

Identify the creators and critical components of probability-differential theory.

Analyze how specific behaviors or preferences can serve as reinforcers according to various theoretical perspectives.

---

Definitions:

Total Spending

The aggregate amount of money spent by households, businesses, and the government on goods and services within a certain period.

Invention

The conception of a new product or process combined with the first proof that it will work.

Innovation

The process and outcome of creating something new or improved, including products, services, processes, or business models, that adds value.

Marginal Cost

The expense for creating a supplementary unit of a product or service.