Natural Monopolies

question 163

Multiple Choice

Natural monopolies:

• A) produce the optimal quantity of output, unlike other monopolies.
• B) exist when one firm can produce the market output at a lower cost than two or more firms.
• C) generally experience large diseconomies of scale, leading to production inefficiencies and work stoppages.
• D) face market demand curves that are perfectly elastic.

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Definitions:

Pavlov

A Russian physiologist best known for his discovery of classical conditioning through his experiments with animals.

Skinner

B.F. Skinner, an American psychologist, is known for his development of the theory of behaviorism and the concept of operant conditioning.

Respondent Behavior

A behavior that occurs as an automatic response to a certain stimulus, often used in classical conditioning scenarios.

Operant Behavior

Conduct that is regulated through its outcomes, such as incentives and penalties, within the learning environment.