During the Long Run

question 123

Multiple Choice

During the long run:

• A) Output is limited by the law of diminishing returns.
• B) The firm can build or lease any size factory.
• C) Some inputs are fixed and some are variable.
• D) There are no economic costs.

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Definitions:

Secondary Reinforcer

An acquired reinforcing stimulus, which becomes effective through its link with a primary reinforcer.

Positive Reinforcer

A prompting element, which upon being offered subsequent to an action, elevates the chances of the repetition of that action.

Stimulus

A stimulus is any object, event, or factor capable of inciting a physiological or psychological response.

Secondary Reinforcer

A stimulus reinforcing a behavior through its association with a primary reinforcer, not inherently rewarding.