Explain Why a Firm's Short-Run Marginal Cost Curve Initially Decreases

question 152

Essay

Explain why a firm's short-run marginal cost curve initially decreases and then increases in most cases.

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Definitions:

Positive Punishment

An operant conditioning principle where the introduction of an unfavorable outcome or stimulus following a behavior decreases the likelihood of the behavior occurring again.

Behaviors

Actions or reactions of an individual in relation to the environment or situations.

Variable-Ratio Schedule

A reinforcement schedule in which the number of responses required for reinforcement varies randomly around a mean value, promoting high and steady rates of response.

Fixed-Ratio Schedule

A reinforcement strategy in behavioral psychology where a response is rewarded only after a specified number of responses.