If a fiRm's Marginal Revenue Is Less Than Price at All

question 1

Multiple Choice

If a firm's marginal revenue is less than price at all levels of output, this means that _____.

• A) it must lower its price to sell an additional unit of output
• B) it is a price taker in the market
• C) there are no barriers to entry and exit in the market
• D) there are a large number of buyers and sellers in the market

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Definitions:

Negative Reinforcement

A behavioral concept where the removal of an unpleasant stimulus strengthens a particular behavior.

Positive Punishment

A form of behavior modification that adds an unfavorable outcome or event following an undesired behavior, with the intention of decreasing that behavior in the future.

Negative Punishment

The removal of a desirable stimulus to decrease a behavior.

Bandura

Albert Bandura is a psychologist known for his social learning theory, emphasizing the role of observational learning, self-efficacy, and reciprocal determinism in behavior.