Which of the Following Would Be Positive Feedback to a Local

question 20

Multiple Choice

Which of the following would be positive feedback to a local car dealer from a systems theory?

• A) sending out a shipment of used cars that were traded in
• B) finding that the inventory of unsold cars has decreased significantly over the last few months
• C) coverage in the local paper about the hail damage to their inventory of cars
• D) receiving a shipment of new cars from the producer

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Definitions:

Pure Monopolist

An exclusive provider of a particular good or service in the market, facing no competition.

MR = MC Rule

The principle that a firm will maximize its profit (or minimize its losses) by producing the output at which marginal revenue and marginal cost are equal, provided product price is equal to or greater than average variable cost.

Pure Competition

A business environment where many small companies sell identical products and there are no barriers to entering or leaving the market, resulting in perfect competition.

Pure Monopoly

A market framework where there is only one provider offering a distinctive product without any closely resembling alternatives.