If a Firm Cannot Cover Its Variable Costs,it Will

question 138

Multiple Choice

If a firm cannot cover its variable costs,it will

• A)operate in the short run and stay in business in the long run.
• B)operate in the short run and go out of business in the long run.
• C)shut down in the short run and stay in business in the long run.
• D)shut down in the short run and go out of business in the long run.

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, through which an association is made between a behavior and a consequence.

Insight Learning

A type of learning that occurs when an individual suddenly realizes how to solve a problem without trial-and-error, often leading to immediate solution understanding.

Köhler

Refers to Wolfgang Köhler, a German psychologist and one of the founders of Gestalt psychology, which emphasizes the organization of perception and thinking in a "whole" rather than in isolated elements.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned, becoming apparent only when there is an incentive to demonstrate it.