Suppose You Have Just Opened a Store to Sell Espresso

question 157

Multiple Choice

Suppose you have just opened a store to sell espresso machines.Both you and a competing store buy this machine from a manufacturer for $130 each.Your competitor who has a store of the same size as yours is currently selling about 10 machines a month at a price of $200 per machine.You expect to sell about 6 machines a month at a price of $220 per machine.If you lower your price, you expect to make a loss.Which of the following could explain why your competitor is able to profitably sell the machine at a lower price although the cost of purchasing the machine is the same for the both of you?

• A)The competing store probably has a lower marginal cost of production.
• B)The competing store probably has a lower average variable cost of production.
• C)The competing store's goal is to maximize revenue and not profit.
• D)The competing store probably has a lower average cost because average fixed cost falls as output increases.

Recognize the methodologies used by Skinner for obtaining data and his views on statistical analysis.

Distinguish between positive and negative reinforcement, and understand their effectiveness in behavior modification.

Examine criticisms of Skinner's behavioral theory and its application to human behavior.

Explore various methods of assessing and measuring behavior, including physiological measurements.

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Definitions:

Schema

A cognitive framework or concept that organizes and interprets information in the mind, helping to understand and predict the world.

Concept Formation

The cognitive activity of organizing information into relevant categories or ideas.

Psychological Essentialism

The belief that certain categories, such as biological species or social groups, have an underlying and unobservable essence that defines their identity.

Connectionism

An approach in cognitive science that models mental or behavioral phenomena as the emergent processes of interconnected networks of simple units.