Long- Run Equilibrium in a Perfectly Competitive Industry Is Characterized

question 6

Multiple Choice

Long- run equilibrium in a perfectly competitive industry is characterized by

• A) falling costs.
• B) internal economies of scale.
• C) each firm producing at the minimum point on its LRAC curve.
• D) rising costs.
• E) an output level at which firms' SRATC curves are tangent to the downward sloping portion of their LRAC curves.

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Definitions:

Classical Conditioning

Classical conditioning is a learning process that occurs when two stimuli are repeatedly paired together; an initially neutral stimulus eventually elicits a response that was initially elicited by another stimulus.

Contrived Extrinsic Rewards

Artificial incentives given to motivate behavior, such as bonuses or points, that do not naturally relate to the task being performed.

Feedback

Information provided about the outcomes of a process or activity, used to adjust or improve future performance or decision-making.

Law of Immediate Reinforcement

A principle suggesting that reinforcement (rewards or punishments) following a behavior makes it more likely that the behavior will occur again in the future.