If the Long-Run Average Cost Curve Is U-Shaped, the Optimal

question 120

Multiple Choice

If the long-run average cost curve is U-shaped, the optimal scale of production from society's viewpoint is

• A)the minimum efficient scale.
• B)where maximum economic profit is earned by producers.
• C)where firm profit is large enough to finance research and development.
• D)one which guarantees economic profit.

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Definitions:

Intermittent Reinforcement

A conditioning schedule where a behavior is reinforced only some of the time, leading to more resistant and persistent responses.

Primary Reinforcement

A naturally rewarding stimulus, such as food or water, that satisfies a basic biological need and hence reinforces a behavior directly.

Secondary Reinforcement

A process in conditioning where a stimulus reinforces a behavior after it has been associated with a primary reinforcer.

Variable Ratio Schedule

A reinforcement schedule used in conditioning where a response is reinforced after an unpredictable number of responses, leading to high and steady response rates.