If in a Market the Last Unit of Output Was

question 39

Multiple Choice

If in a market the last unit of output was sold at a price higher than marginal cost,

• A) producers are better off producing more.
• B) consumers are better off if less of the product is sold.
• C) social welfare is not maximized.
• D) the unit increased total profit.

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Definitions:

Conditioning

According to behaviorism, the processes of learning. The word conditioning emphasizes the importance of repeated experiences, as when an athlete conditions his or her body by training day after day.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention until it is associated with an unconditioned stimulus.

Positive Reinforcement

A technique used in behavior analysis to increase the likelihood of a desired response by adding a reward after the desired behavior is exhibited.

Restructured Ideas

Concepts or theories that have been revised or reorganized to incorporate new information or perspectives.