The Basic Activity of a Firm Is

question 157

Multiple Choice

The basic activity of a firm is

• A)to set the prices of its products as high as possible.
• B)to compete with other firms that produce similar products.
• C)to provide jobs for its employees.
• D)to use inputs to produce outputs of goods and services.

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Definitions:

Reward

A positive reinforcement that increases the likelihood of a behavior being repeated.

Anticipatory Goal Responses

Behavioral or physiological responses that occur in anticipation of achieving a goal, often motivating the individual towards the goal.

Pavlovian Conditioning

Also known as classical conditioning, it's a learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.

Drive

An internal motivational state created by physiological or psychological needs that drive behavior toward fulfilling those needs.