Under the Model of Monopolistic Competition,a(an)_ in the Number of Firms

question 17

Multiple Choice

Under the model of monopolistic competition,a(an) _ in the number of firms in the industry will cause to .

• A)increase; average price; decrease
• B)increase; marginal cost; decrease
• C)increase; average cost; decrease
• D)increase; average price; increase
• E)decrease; markup; decrease

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Definitions:

Extinction

In psychology, the process through which a previously reinforced behavior is weakened by the removal or absence of reinforcement.

Conditioned Taste Aversion

An acquired response where an individual avoids consuming a certain food or drink because it has been associated with an unpleasant outcome, such as nausea or sickness.

Evolutionary Theory

A scientific explanation for the diversity of life, proposing that species change over time through natural selection and genetic variation.

Associative Learning

A learning process by which a connection or association is made between two stimuli or between a behavior and a stimulus.