Figure: Demand 3 If the Two-Firm Oligopoly Facing the Market

question 131

Multiple Choice

Figure: Demand 3 If the two-firm oligopoly facing the market in this diagram is currently producing at the competitive output level and one of the firms reduces output by 4 units, the firm's profits would increase from _________________.

• A) $64 to $96
• B) $0 to $24
• C) $0 to $48
• D) $32 to $48

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Definitions:

Conditioned Responses

Learned reactions or responses to certain stimuli that occur as a result of conditioning, such as in classical and operant conditioning.

Garcia

A reference likely to John Garcia, known for his research on taste aversion learning showing that an organism can learn to avoid a substance after a negative experience.

Operant Conditioning

An approach to learning where behaviors are influenced to be repeated or not through the administration of punishments and rewards.

Self-modification

The process of changing one's behavior or characteristics by oneself, often with the aim of improving personal well-being.