A Quantity Less Than the Equilibrium Quantity in a Competitive

question 102

Multiple Choice

A quantity less than the equilibrium quantity in a competitive market is inefficient because

• A) the marginal benefit of another unit is greater than its marginal cost.
• B) too much of the good is being produced.
• C) the marginal cost of another unit is greater than its marginal benefit.
• D) the marginal benefit of another unit is not equal to zero.
• E) the marginal benefit is not maximized.

Grasp the concept of formal planning models and their reliance on managerial experience.

Recognize the implications of choosing a level strategy in service firms and determine the optimal level of output.

Define and explain the concept of disaggregation in planning.

Understand the mathematical approaches to and limitations of aggregate planning.

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Definitions:

Discriminative Stimulus

A type of stimulus in the environment that increases the chance of a response due to its association with a reinforcement or punishment.

Operant Response

A behavior that is modified by its consequences, which can lead to changes in future behavioral patterns.

Unconditioned Stimulus

A stimulus that naturally triggers a response without any conditioning, such as food causing salivation in dogs.

Stimulus Generalization

The tendency for a conditioned response to be elicited by stimuli that are similar but not identical to the conditioned stimulus.