Use a Graph to Demonstrate Why a Profit-Maximizing Monopolistically Competitive

question 137

Short Answer

Use a graph to demonstrate why a profit-maximizing monopolistically competitive firm must operate at excess capacity. Explain why a perfectly competitive firm is not subject to the same constraint.

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Definitions:

Discriminative Stimulus

A stimulus in the presence of which a particular response will be reinforced or punished, leading to an increase or decrease in the occurrence of that response.

Negative Reinforcer

An unpleasant or aversive stimulus that, when removed or avoided after a behavior, increases the likelihood of that behavior occurring in the future.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any prior learning.

Variable-Ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, often used in behaviorist conditioning.