Refer to Figure 24

question 54

Multiple Choice

Refer to Figure 24.3.Suppose this good could somehow be produced at no cost (that is,the total cost at any level of output was zero) .This single-price monopoly firm would maximize profit by

• A)Raising the price as high as possible until the quantity demanded began to decrease.
• B)Producing an infinite amount and selling at the highest price possible.
• C)Producing Q₂ and charging P₂.
• D)Producing Q₃ and charging P₃.

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Definitions:

Thorndike

Edward Thorndike, an American psychologist, who is famous for his work in the early 20th century on learning theory and the law of effect.

Behavior Modification

The application of operant-conditioning techniques to teach new responses or to reduce or eliminate maladaptive or problematic behavior; also called applied behavior analysis.

Puzzle Boxes

Experimental devices used in animal learning research, where an animal must solve a problem or manipulate mechanisms to escape or obtain a reward.

Thorndike

An American psychologist who developed the law of effect, which states that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are not.