Other Things Equal, If the Prices of a Firm's Variable

question 299

Multiple Choice

Other things equal, if the prices of a firm's variable inputs were to fall,

• A)one could not predict how unit costs of production would be affected.
• B)marginal cost, average variable cost, and average fixed cost would all fall.
• C)marginal cost, average variable cost, and average total cost would all fall.
• D)average variable cost would fall, but marginal cost would be unchanged.

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Definitions:

Fixed-Ratio Schedule

A schedule of reinforcement where a response is rewarded after a specified number of responses, leading to a high and steady rate of responding.

Variable-Ratio

A reinforcement schedule where a response is rewarded after an unpredictable number of responses, enhancing the response rate.

Compound

A substance made up of two or more elements chemically bonded together, characterized by having properties distinct from its component elements.