A Competitive Firm Produces a Single Output Using Several Inputs

question 24

Multiple Choice

A competitive firm produces a single output using several inputs.The price of output rises by $4 per unit.The price of one of the inputs increases by $4 and the quantity of this input that the firm uses increases by 16 units.The prices of all other inputs stay unchanged.From the weak axiom of profit maximization we can tell that

• A)the inputs of the other factors must have stayed constant.
• B)the inputs of at least one of the other factors must have decreased by at least 16 units.
• C)the output of the good must have increased by at least 16 units.
• D)the output of the good must have decreased by at least 8 units.
• E)the inputs of at least one of the other factors must have increased by at least 16 units.

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Definitions:

Extrinsic Reinforcement

Motivation or reward that comes from outside an individual, such as money, grades, or praise, which can influence behavior.

Higher-Order Reinforcement

A process in which reinforcement is given for behavior that meets or exceeds a previously established criterion of performance.

Secondary Reinforcement

A conditioning process where a stimulus reinforces a behavior after it has been associated with a primary reinforcer.

Shaping

A method of operant conditioning by which successive approximations of a desired behavior are reinforced until the exact behavior is achieved.