When External Diseconomies Exist

question 18

Multiple Choice

When external diseconomies exist

• A) the true demand curve is to the right of the market demand curve.
• B) the actual market equilibrium price is too high from society's perspective.
• C)the supply curve slopes downward to the right.
• D) industry output is less than socially optimal.
• E) the supply curve reflecting the social costs is to the left of the industry supply curve.

Comprehend the concept of secondary (conditioned) reinforcers and their development.

Explain the principles and applications of operant conditioning.

Understand the role and impact of a model in observational learning.

Identify and explain stimulus generalization and discrimination.

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Definitions:

Gross Profit

The difference between net sales and the cost of goods sold, indicating the profit made before deducting expenses like salaries and rent.

Payroll Tax Expense

The cost to employers that includes the total of the employer’s FICA OASDI, FICA Medicare, FUTA, and SUTA taxes.

Salaries Expense

An expense account recording the total amount paid to employees for services rendered during a specific period.

Freight-in

Costs associated with transporting inventory to the company, which are typically added to the cost of inventory.