A Firm That Is NOT Maximizing Profits

question 96

Multiple Choice

A firm that is NOT maximizing profits

• A) would never be able to operate in the United States.
• B) must not be owned by stockholders.
• C) may find it difficult to raise financial capital from external capital markets.
• D) is likely to face legal prosecution from the Department of Commerce.

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Definitions:

Instrumental Conditioning

A learning process wherein behavior is modified by the consequences of the behavior, with reinforcement used to increase desirable behaviors and punishment to decrease undesirable ones.

Classical Conditioning

The process of acquiring knowledge by forming connections between a stimulus found in the surroundings and one that arises on its own, which leads to the development of a learned reaction.

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior by applying a stimulus after the behavior is exhibited.

Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior being repeated.