The Model for a Network Demand Curve Assumes Which of These

question 57

Multiple Choice

The model for a network demand curve assumes which of these?

• A) The short-run supply curve is positively sloped.
• B) A new entrant can expand in small increments.
• C) There is a short-run demand curve corresponding to each short-run supply curve.
• D) Only one firm may enter the industry.

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Definitions:

Drive-Reduction Theory

A theory that postulates that the motivation for behavior arises from biological needs that drive an organism to seek homeostasis or a state of balance.

Blood Vessels Constrict

The narrowing of blood vessels, which can increase blood pressure and reduce blood flow to certain parts of the body.

Physiological Need

Basic, essential requirements necessary for survival, such as food, water, and shelter, often described in the context of Maslow's hierarchy of needs.

Drive-Reduction Theory

A theory of motivation that posits that human beings are motivated to reduce internal tensions caused by unmet biological needs, such as hunger or thirst.