An Important Difference Between a Perfectly Competitive Market and a Monopoly

question 55

Multiple Choice

An important difference between a perfectly competitive market and a monopoly is that:

• A) the demand curve facing a monopoly is horizontal, while the demand curve facing a competitive firm is upward sloping.
• B) a monopoly firm is a price taker, while a perfectly competitive firm is a price setter.
• C) a perfectly competitive firm makes supernormal profits, while a monopoly firm makes zero profits.
• D) market price is not equal to marginal cost in a monopoly, while for a perfectly competitive

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Definitions:

External Self-Reinforcement

A type of reinforcement paralleling that administered by a teacher. However, instead of the teacher delivering the reinforcer, the student performs this task.

Internal Reinforcement

The psychological process whereby an individual's intrinsic satisfaction from an activity encourages the continuation of that activity without external reward.

Performance Criteria

Specifies the expected levels of employee performance or outcomes, used to evaluate the effectiveness of tasks and duties.

Operant Model

A behavioral model focusing on the modification of observable behaviors through reinforcement and punishment.