Which of the Following Is (Are) Shortcomings of Lab Experiments

question 53

Multiple Choice

Which of the following is (are) shortcomings of lab experiments?
I. People in lab experiments know that they are being studied, so they may not behave normally.
II. The amount of money involved in lab experiments is small, which means the participants do not stand to gain or lose much from their choices.
III. Many people in experiments are asked to do things that they have never done before.

• A) II
• B) I and II
• C) III
• D) I, II, and III

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Definitions:

Total Industry Output

The aggregate production of goods and services in a specific industry within a given period.

Marginal Cost

The cost of producing one additional unit of a good or service, reflecting changes in variable costs.

Cartel

An agreement among competing businesses to control prices or exclude entry of a new competitor in the market, aiming at maximizing their profits collectively.

Fixed Cost

Costs that do not vary with the level of output produced, such as rent, salaries, and some utilities.