[The Following Information Applies to the Questions Displayed Below

question 56

Multiple Choice

[The following information applies to the questions displayed below.]
BT&T Corporation manufactures telephones.Recently,the company produced a batch of 600 defective telephones at a cost of $9,000.BT&T can sell these telephones as scrap for $9 each.It can also rework the entire batch at a cost of $6,500,after which the telephones could be sold for $20 per unit.
-Which of the following statements is false regarding the defective units?

• A)BT&T will not recover its costs if it sells the defective units as scrap.
• B)BT&T will recover total costs incurred if it reworks the defective units.
• C)BT&T will not recover its costs if it reworks the defective units.
• D)BT&T will recover more of its additional costs if it decides to rework the defective units.

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Definitions:

Positive Reinforcement

A behavioral strategy that involves the addition of a rewarding stimulus following a desired behavior, aimed at increasing the likelihood of the behavior’s recurrence.

Negative Reinforcement

A behavioral principle where the removal of an adverse stimulus strengthens or increases the likelihood of a desired behavior.

Positive Punishment

Adding an undesirable stimulus to decrease a behavior.

Negative Punishment

A behavioral principle where the removal of a desirable stimulus following a behavior decreases the likelihood of that behavior occurring in the future.