Modeling Trade in Imperfectly Competitive Industries Is Problematic Because

question 26

Multiple Choice

Modeling trade in imperfectly competitive industries is problematic because

• A)there is only a single model of imperfect competition (monopoly)but imperfect competition can take many forms in the real world.
• B)there is no single generally accepted model of behavior by imperfectly competitive firms.
• C)there are no models of imperfectly competitive behavior.
• D)it is difficult to find an imperfectly competitive firm in the real world.
• E)collusion among imperfectly competitive firms makes usable data rare.

---

Definitions:

Self-Fulfilling Prophecy

A phenomenon where an individual's or group's expectations about an outcome cause behaviors that make the outcome more likely to happen.

Punishment

The application of an undesirable outcome in response to a behavior, with the aim of decreasing or eliminating that behavior.

Extinction

Discourages a behavior by making the removal of a desirable consequence contingent on its occurrence.

Attribution Theory

A theory in social psychology that explains how individuals infer the causes of their own and others' behavior.