Suppose It Costs Minnie's Mini-Golf (A Monopolist)not a Penny More

question 241

Multiple Choice

Suppose it costs Minnie's Mini-Golf (a monopolist) not a penny more to let another person on the course.If Minnie's faces a linear (downward-sloping) market demand curve, it will maximize profit by choosing the point on the demand curve at which

• A)marginal revenue is greatest
• B)price elasticity is unit elastic
• C)price elasticity is inelastic
• D)price exceeds average total cost by the greatest amount
• E)price exceeds marginal cost by the greatest amount

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Definitions:

Counterconditioning

A classical conditioning procedure for changing the relationship between a conditioned stimulus and its conditioned response.

Classical-Conditioning Procedure

A pairing method of learning where two stimuli when frequently associated, lead to a response initially prompted by the second stimulus but subsequently by the first stimulus alone.

Conditioned Stimulus

A formerly neutral signal that, once it is linked with an unconditioned stimulus, ultimately leads to eliciting a conditioned response.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.