The Sum of the Explicit and Implicit Costs Incurred in the Production

question 114

Multiple Choice

The sum of the explicit and implicit costs incurred in the production process is called

• A) fixed cost.
• B) sunk cost.
• C) marginal cost.
• D) total cost.

Evaluate the financial implications of discontinuing a department or product line.

Assess the impact of adding new products to the product line on net income and other product sales.

Determine the maximum price to pay for an outside supplier versus producing internally.

Analyze the effects of discontinuing a department or product line on a company's overall net operating income.

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Definitions:

FR 10 Schedule

A fixed-ratio schedule of reinforcement where a response is rewarded only after it has been performed a specified number of times, in this case, ten times.

FR 40 Schedule

A type of fixed-ratio schedule in operant conditioning where a response is reinforced only after a specific number of responses have been made, in this case, every 40th response.

Operant Chamber

A laboratory apparatus used to study animal behavior in operant conditioning, allowing systematic presentation of stimuli and recording of responses; also known as a Skinner box.

Delayed Reinforcer

A reinforcement given some time after the desired behavior, which can still effectively strengthen the behavior despite the delay.