Which of the Following Is Not an Assumption Economists Make

question 117

Multiple Choice

Which of the following is not an assumption economists make when using the model of perfect competition?

• A) Firms seek to maximize profits.
• B) The products of each firm in a particular market are identical.
• C) Each firm sets it price equal to its average total cost.
• D) There is easy entry and exit.

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Definitions:

Big Five Dimensions

A model that outlines five broad dimensions used to describe human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Jungian Theory

A psychological theory developed by Carl Jung that focuses on concepts such as the collective unconscious, archetypes, and the process of individuation.

Radical Behaviorism

A theory in psychology that emphasizes the importance of external behaviors in studying and treating psychological disorders, considering learned behaviors as the main drivers of action.

Reinforcement

In psychology, a process of encouraging or establishing a pattern of behavior by offering rewards or positive outcomes.