What Can We Expect Will Result When a Firm in a Monopolistically

question 54

Multiple Choice

What can we expect will result when a firm in a monopolistically competitive industry increases its price by a small amount?

• A) Their revenues will rise since differentiation makes demand inelastic.
• B) Other firms in the industry are unlikely to react.
• C) Their sales will fall dramatically since their demand curve is almost perfectly elastic.
• D) Other firms in the industry will likely do the same thing.

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Definitions:

Reinforcers

Stimuli, which when presented after a behavior, increase the likelihood of that behavior being repeated.

Pathological Triangular Relationship

A dysfunctional pattern of interaction involving three parties, where conflict between two is avoided by offloading it onto a third party.

Disengaged Family

A family unit where members have weak emotional bonds, leading to a lack of support and communication among them.

Enmeshed Family

A family system with overly close and intertwined relationships, where boundaries are blurred, and independence is discouraged.