The Maximum Total Economic Profit That Can Be Made by Colluding

question 6

Multiple Choice

The maximum total economic profit that can be made by colluding duopolists

• A) is less than the economic profit made by a monopolist.
• B) equals the economic profit made by a monopolist.
• C) exceeds the economic profit made by a monopolist.
• D) bears no necessary relation to the economic profit made by a monopolist.

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Definitions:

Positive Reinforcement

A behavioral strategy involving the addition of a rewarding stimulus following a desired behavior, thereby increasing the likelihood of that behavior being repeated.

Negative Reinforcement

The strengthening of a response by the removal of an aversive stimulus.

Human Nature

the inherent characteristics, behaviors, and tendencies that are considered typical of all humans.

Token Economy

A behavior modification system based on the systematic reinforcement of target behavior through the distribution and exchange of tokens that can be exchanged for desired incentives.