If People Are Induced to Participate in an Experiment by Paying

question 12

Multiple Choice

If people are induced to participate in an experiment by paying them large sums of money

• A) the experiment will be completed more quickly
• B) the experiment could be in violation of the APA's Ethical Principles on Coercion
• C) the experiment could be in violation of the APA's Ethical Principles on Informed Consent
• D) the participants would be less likely to file a lawsuit over the experimental activity

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Definitions:

Competitive Price-searcher

A market structure where firms have some degree of market power, allowing them to set prices above marginal cost to seek profits, while still facing competition.

Average Total Cost

The total cost of production divided by the quantity produced, representing the cost per unit of output.

Contestable Market

A market with free entry and exit, where a company's prices and outputs are constrained by the threat of competition from potential entrants.

Economic Profit

The offset between total financial inflow and all encompassing outgoings, covering both specified and unspecified expenses.