A Regulated Monopoly Facing Average Cost Pricing Rule Will Make

question 469

Multiple Choice

A regulated monopoly facing average cost pricing rule will make the same profit as a firm in ________ market does in the long run.

• A) an unregulated monopoly
• B) an oligopoly
• C) a perfectly competitive
• D) All of the above answers are correct.

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Definitions:

Constant Stimuli

A method in psychophysics used to measure the sensitivity of sensory systems by presenting stimuli of constant intensity but differing in duration or frequency.

Method of Limits

A psychological research method used to measure sensitivity to stimuli by gradually increasing or decreasing the stimulus intensity until it is detectable by the participant.

Adjustment

The process of adapting or becoming accustomed to new conditions or to a new environment.

Weber's Law

A rule which asserts that the minimal discernible change in a stimulus is a constant proportion of the initial stimulus.