It Is Virtually Impossible in Advance to Identify a Long-

question 20

Essay

It is virtually impossible in advance to identify a long- run profit- maximising price and output. Which of the following are reasons for this? (Cross out wrong words.)
a() Cost and revenue curves are likely to shift unpredictably as a result of the policy pursued. (Yes / No)
b() Cost and revenue curves are likely to shift as a result of unpredictable external factors. (Yes / No)
c() The firm is likely to experience economies of scale. (Yes / No)
d() Some policies may affect both demand and costs. (Yes / No)
e() Different managers are likely to make different judgements about the best way of achieving long- run maximum profits. (Yes / No)

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.