A Purely Competitive Firm Is Precluded from Making Economic Profits

question 86

Multiple Choice

A purely competitive firm is precluded from making economic profits in the long run because

• A)it is a "price taker."
• B)its demand curve is perfectly elastic.
• C)of unimpeded entry to the industry.
• D)it produces a differentiated product.

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Definitions:

Operant Response

A behavior that is modifiable by its consequences, including reinforcement or punishment, within the context of operant conditioning.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Reinforced

In psychology, refers to the process of strengthening a behavior by providing a consequence that will increase the likelihood of the behavior's recurrence.

Shaping

A method of behavior training in which successive approximations toward a desired behavior are reinforced.