If Resource Prices Are Fixed and the Product Selling Price

question 189

Multiple Choice

If resource prices are fixed and the product selling price rises, then

• A) profits will decrease.
• B) profits will increase.
• C) profits will remain constant.
• D) both profits and output will decrease.

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Definitions:

Opponent Process

A theory in psychology and vision science that suggests the human visual system interprets color in an opposing way, involving three pairs of colors.

Sensitization

An increase in the strength of a response with repeated presentations of a stimulus.

Habituation

The method through which a living being reduces or stops its reactions to a constant stimulus over a period.

Behavioral Contrast

The change in the intensity or rate of a specific behavior when the reward conditions for another behavior are modified, demonstrating how reinforcement can influence behavioral patterns divergently.