Which of Following Is True of Monopoly and Not of Perfect

question 76

Multiple Choice

Which of following is true of monopoly and not of perfect competition?

• A)Profit is maximized where marginal cost equals marginal revenue
• B)The industry demand curve is also the firm's demand curve
• C)Normal profits are made only if average total cost equals average revenue
• D)Profit is maximized in the elastic portion of the demand curve
• E)the firm has no control over the market price

Understand the relationship between risk and return in investment choices.

Analyze the impact of government fiscal policies on interest rates and investment.

Describe the market mechanics and participants in the stock and bond markets.

Understand the effects of tax policies on investment decisions and interest rates.

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Definitions:

Reinforcing

The process of strengthening a behavior by providing a consequence that the individual finds rewarding.

Punishing

The act of imposing a penalty or negative consequence for an undesirable action or behavior, with the intent of reducing or eliminating that behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Respondent Behavior

Behavior that is elicited by a specific stimulus and is part of the classical conditioning process, such as salivating when smelling food.