The Excess Capacity Theorem Implies That

question 72

Multiple Choice

The excess capacity theorem implies that

• A)consumers would be better off if some monopolistically competitive firms left their markets.
• B)consumers would be better off with more standardization of products.
• C)monopolistic competition benefits society by eliminating excess capacity in production.
• D)monopolistic competition wastes some of society's resources but the elimination of this waste does not necessarily benefit consumers.

Understand the concept of need for achievement and its significance in motivation.

Explain the role of stimulus and arousal motives in seeking stimulation and maintaining effort.

Acknowledge the implications of the Yerkes-Dodson Law on performing complex tasks and simple tasks under varying arousal levels.

Understand the function of the hypothalamus in hunger and eating behaviors.