Assume a Firm Closes Down in the Short Run and Produces

question 160

Multiple Choice

Assume a firm closes down in the short run and produces no output. Under these conditions,

• A)TVC is positive, but TFC and TC are zero.
• B)TFC is positive, but TVC and TC are zero.
• C)TFC and TC are positive, but TVC is zero.
• D)TFC, TVC, and TC will all be positive.

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Definitions:

Transfer of Habit Strength

The process by which the learning and strengthening of a habit in one context or task can influence performance in another context or task.

Conditioned Response

A learned response to a previously neutral stimulus that has become conditioned through association.

Primary Reinforcer

A naturally occurring stimulus like food or drink that is needed for survival and that intrinsically motivates or satisfies physiological needs.

Positive Reinforcer

A positive reinforcer is any stimulus that, when presented after a behavior, increases the likelihood of that behavior being repeated.