In the Model of Monopolistic Competition, an Increase in Industry

question 28

Multiple Choice

In the model of monopolistic competition, an increase in industry output will ________ market shares and ________ profits of producers of higher-priced goods and will ________ market shares and ________ profits of producers of lower-priced goods.

• A) increase; reduce; increase; reduce
• B) increase; increase; reduce; reduce
• C) reduce; increase; reduce; increase
• D) reduce; reduce; increase; increase
• E) reduce; increase; increase; reduce

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Definitions:

Delivered

In a behavioral context, refers to the administration or provision of a consequence or reinforcement following a behavior.

Positive Reinforcement

A process in behavioral psychology whereby a behavior is strengthened by the consequence of experiencing a positive condition.

Stimuli

External or internal cues that evoke a response from an organism or system.

Probability

A measure of the likelihood that a specific event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.