The Long Run Is a Time Frame in Which

question 146

Multiple Choice

The long run is a time frame in which

• A) the quantities of some factors of production are fixed and the quantities of other factors of production can be varied.
• B) the quantities of all factors of production can be varied.
• C) the quantities of all factors of production are fixed.
• D) all costs are sunk costs.

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Definitions:

Conditioning

A process of behavior modification by which a subject comes to associate a desired behavior with a previously unrelated stimulus.

Negative Contrast Effects

A psychological phenomenon where an individual's perception of an option is negatively influenced by a comparison with a better option.

Reinforcement

A process in operant conditioning that increases the likelihood of a behavior being repeated, which can be either positive (by adding a stimulus) or negative (by removing a stimulus).

Negative Contrast Effect

The effect in which a shift from high to low reward magnitude produces a lower level of responding than if the reward magnitude had always been low.