If the Minimum Efficient Scale in Rough Diamond Mining Is

question 149

Multiple Choice

If the minimum efficient scale in rough diamond mining is 30,000 diamonds per year,

• A) The average cost of mining 2,000 diamonds is equal to the average cost of mining 30,000 diamonds
• B) The average cost of mining 2,000 diamonds is greater than the average cost of mining 30,000 diamonds
• C) The total cost of mining 2,000 diamonds is greater than the total cost of mining 30,000 diamonds
• D) The firm should not produce more than 30,000 diamonds
• E) Marginal cost exceeds average cost at 30,000 diamonds

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Definitions:

Counterconditioning

A behavior therapy technique used to replace a negative or unwanted response to a stimulus with a positive one.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, encouraging or discouraging certain behaviors.

Stimulus Generalization

In operant conditioning, the tendency for a response that has been reinforced (or punished) in the presence of one stimulus to occur (or be suppressed) in the presence of other similar stimuli.

Skills Training

In behavior therapy, an effort to teach the client skills that he or she may lack, as well as new constructive behaviors to replace self-defeating ones.