Use the Following to Answer Questions

question 131

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost of $2 and no fixed cost. Suppose that these two producers have formed a cartel, agreed to split production of output evenly, and are maximizing total industry profits. If Margaret decides to cheat on the agreement and sell 100 more gadgets, Margaret's profit will be _____, and Ray's profit will be _____.

• A) $1500; $1,000
• B) $900; $600
• C) $1,400; $1,000
• D) $1,000; $1,400

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Definitions:

Shaping

A method used in behavioral psychology to gradually teach new behaviors through the use of reinforcement for successive approximations to the desired behavior.

Discriminative Stimulus

A specific cue or stimulus in the environment that signals the availability of reinforcement or punishment, guiding behavior accordingly.

Reinforcement

In behavioral psychology, a stimulus that increases the probability of a behavior being repeated.

Operant Conditioning

A learning principle where behaviors are influenced by the consequences that follow, such as rewards or punishments.