For a Long While, Electricity Producers Were Thought to Be

question 139

Multiple Choice

For a long while, electricity producers were thought to be a classic example of a natural monopoly. People held this view because

• A)the average cost of producing units of electricity by one producer in a specific region was lower than if the same quantity were produced by two or more producers in the same region.
• B)the average cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more produced in the same region.
• C)the marginal cost of producing units of electricity by one producer in a specific region was higher than if the same quantity were produced by two or more producers in the same region.
• D)electricity is a special non-excludable good that could never be sold in a competitive market.

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Definitions:

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus to which the response was originally conditioned.

Backward Conditioning

A conditioning process where a conditioning stimulus is presented after the unconditioned stimulus, often less effective in creating associations.

Desensitization

The process of reducing sensitivity or responsiveness to a stimulus, typically as a result of repeated exposure to that stimulus.

Reaction Formation

A defense mechanism where an individual behaves in a manner opposite to their true feelings or impulses, often observed in psychological contexts.