Practical Capacity Does Not Adjust for Routine Downtime in a Production

question 100

True/False

Practical capacity does not adjust for routine downtime in a production process.

Analyze the components of total costs and their impact on profits.

Determine the effect of opportunity costs on the profitability of a business.

Evaluate the condition of a firm based on its profit/loss status.

Identify the characteristics of a firm's operational phase (short run or long run).

---

Definitions:

Principle of Reinforcement

The principle of reinforcement is a concept in behaviorism that describes how the consequences of a behavior increase or decrease the likelihood of that behavior being repeated.

Social Exchange Theory

A concept in social psychology which suggests that human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

Comparison Level

One’s personal standard of what constitutes an acceptable balance of rewards and costs in a relationship.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.