This Table Shows the Total Costs for Various Levels of Output

question 26

Multiple Choice

This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market. According to the table shown,when 1 unit is produced:

• A) marginal costs exceed marginal revenue, and the firm should produce more.
• B) marginal revenue exceeds marginal costs, and the firm should produce more.
• C) marginal revenue exceeds marginal costs, and the firm should produce less.
• D) marginal costs exceed marginal revenue, and the firm should produce less.

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Definitions:

Negative Reinforcement

A process in behavior modification where the removal of an undesirable outcome strengthens a behavior.

Punishment

A process in behavior modification that involves presenting an adverse event or outcome in order to decrease the likelihood of a behavior recurring.

Biologically Primed

Innately equipped or predisposed by biology to learn certain behaviors or develop certain physical or psychological traits.

Associate Sickness

The process by which individuals link certain stimuli or experiences with feeling ill.