Monopolies Are Inefficient Because, at the Profit-Maximising Output Level

question 46

Multiple Choice

Monopolies are inefficient because, at the profit-maximising output level,

• A) MB = MC.
• B) MC = MR.
• C) MB does not equal MC.
• D) MC does not equal MR.
• E) P = ATC.

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Definitions:

Negative Reinforcement

The process of strengthening a behavior by removing or avoiding a negative outcome or stimulus.

Positive Punishment

A method of behavior modification that involves the addition of an unfavorable outcome or stimulus following an undesirable behavior to decrease its occurrence.

Negative Punishment

A behavior modification technique where a favorable stimulus is removed after a certain behavior, decreasing the likelihood of that behavior occurring in the future.

Positive Reinforcement

A behavioral concept where a desirable stimulus is introduced following a behavior, increasing the likelihood that the behavior will occur again.