The Downward-Sloping Demand Curve of a Monopolistic Competitor

question 235

Multiple Choice

The downward-sloping demand curve of a monopolistic competitor

• A)reflects some level of control over its own price.
• B)becomes eventually horizontal in the long run.
• C)indicates collusion among the members of the product group.
• D)ensures that the firm will produce at minimum average cost in the long run.

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Definitions:

Conditioned Stimulus Preexposure Effect

A phenomenon where exposure to the conditioned stimulus prior to pairing it with the unconditioned stimulus decreases the effectiveness of conditioning.

Conditioning

The process of learning associations between environmental stimuli and behavioral responses, fundamental to behavioral psychology.

Stimulus

Any event or situation that evokes a response from an organism.

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without any prior learning.