If the Wage Is $8 and the Price of a Cupcake

question 77

Multiple Choice

If the wage is $8 and the price of a cupcake is $4, find King Kupcake's profits at the optimal amount of labor. $\begin{array} { l }\text { Quantity of Workers }&100&200&300&400\\\text { Ouantity of Output }&650&950&1,150&1,200\end{array}$

• A) $2,200
• B) $2,600
• C) $4,600
• D) $5,000
• E) $7,500

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Definitions:

Instinctive Behavior

Actions or reactions that an organism is born with, such as reflexes and fixed action patterns, that are not learned.

Sign Stimulus

A distinctive environmental event that can activate the innate releasing mechanism (IRM) and release a fixed action pattern.

Fixed Action Pattern

A sequence of innate, unchangeable behaviors that is triggered by a specific stimulus and will be carried out to completion once started.

Action Specific Energy

A concept in ethology suggesting that certain behaviors build up energy within an organism, which then seeks release through specific actions.