Recall the Application on Happy Hour Pricing,each Bar Has a Local

question 62

Multiple Choice

Recall the application on happy hour pricing,each bar has a local monopoly within its neighborhood,but faces competition from other bars outside its neighborhood.The bars respond by decreasing its prices,in what happens to the demand curve facing each bar?

• A)It becomes flatter.
• B)It becomes downward slopping.
• C)It shifts to the right.
• D)A and C are correct.

Understand the concept of ecological validity and its relevance to research findings' representation of real-world scenarios.

Grasp the implications of variable manipulation on internal and construct validity.

Differentiate between the purposes and applications of independent and status variables in experimental and non-experimental designs.

Recognize the challenges and limitations associated with designing and manipulating independent variables.

---

Definitions:

Elastic Portion

The segment of a demand or supply curve where a change in price leads to a more than proportional change in quantity demanded or supplied.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit changes as production levels change.

MR Curve

Stands for Marginal Revenue Curve, which shows how the revenue changes with the sale of one additional unit of a product.

Profit-Maximizing

The approach a company takes to determine the most profitable pricing and output combination.