Which of the Following Is True About This Firm

question 88

Multiple Choice

Which of the following is true about this firm?

• A)It is a natural monopoly.
• B)Society can benefit from government regulation using marginal cost pricing without a subsidy.
• C)Marginal cost pricing will assure technical efficiency.
• D)Profit regulation will assure allocative efficiency.

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Definitions:

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety by gradually exposing the individual to the feared object or situation in a controlled way.

Counterconditioning

A behavior therapy technique that involves pairing a positive stimulus with a fear-evoking stimulus to reduce the fearful response.

Second-order Conditioning

A form of conditioning in which a stimulus is paired with a previously conditioned stimulus, leading to learning without the original unconditioned stimulus.