Suppose a Firm's Total Cost Curve Can Be Written TC(Q)

question 35

Multiple Choice

Suppose a firm's total cost curve can be written TC(Q) = Q - .5Q² + Q³, with marginal cost MC(Q) = 1 - Q + 3Q². This cost function exhibits:

• A) economies of scale
• B) diseconomies of scale
• C) neither diseconomies nor economies of scale.
• D) economies of scale for output levels less than some level, Q₁ = 1/4, and diseconomies of scale thereafter.

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Definitions:

Negative Reinforcers

Stimuli that, when removed after a behavior, increase the likelihood that the behavior will occur again in the future.

Aversive Stimulus

An unpleasant or noxious stimulus used to influence behavior through avoidance learning or negative reinforcement.

Negative Punishment

Negative punishment involves the removal of a favorable stimulus following an undesired behavior, with the intention of decreasing the likelihood that the behavior will occur again.

Positive Punishment

A behavior modification technique that involves adding an unpleasant consequence after an undesired behavior to decrease its occurrence.