Julio's Parents Do Nothing to Help Soothe Him When He

question 108

Multiple Choice

Julio's parents do nothing to help soothe him when he is in a stressful situation. They believe they are helping him learn to "suck it up" when they expect him to soothe himself. In this scenario, the parents place little value on ____________________ goodness-of-fit.

• A) optimizing
• B) reducing
• C) ignoring
• D) neutralizing

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Definitions:

Implicit Cost

The opportunity cost equal to what a firm must give up in order to use resources it already owns for production, without direct payment.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.

Economic Profit

The difference between total revenue and total cost, including both explicit and implicit costs.