Joe Is Self-Employed in a Store That Has a Rental

question 9

Multiple Choice

Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product) . If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store. Suppose that Joe had a long term lease which requires him to pay the rent even if he doesn't operate the store. What should Joe do?

• A)Quit immediately.
• B)Keep the job permanently.
• C)Keep the job until the lease expires.
• D)It is impossible to say with the information given in the problem.

---

Definitions:

Unwanted Response

A behavior or reaction that is not desired or intended in a particular context or situation.

Mowrer's Two-Factor Theory

A theory that combines both classical and operant conditioning to explain the development and maintenance of phobias.

Punishment

A consequence that decreases the likelihood of a behavior being repeated by applying an undesirable stimulus or removing a desirable one.

Matching Law

A principle that states the proportion of responses allocated to a particular option matches the proportion of reinforcements obtained from that option.