Which Statement Is TRUE

question 87

Multiple Choice

Which statement is TRUE?

• A)If price falls below average variable cost,the firm will shut down in the short run.
• B)Total revenue and marginal revenue are the same in perfect competition.
• C)Economic profit per unit is found by subtracting MC from price.
• D)Economic profit is always positive in the long run.

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Definitions:

CS

Stands for Conditioned Stimulus in classical conditioning; a neutral stimulus that, after being repeatedly paired with an unconditioned stimulus, becomes able to elicit a conditioned response.

CR

Conditional Reflex; a learned response to a specified stimulus.

Social Learning Theory

A theory that posits individuals learn behaviors by observing and imitating others, influenced by punishments and rewards.

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has elapsed.