Figure 13.3 Figure 13.3 Shows the Demand and Cost Curves for a and Cost

question 115

Multiple Choice

Figure 13.3

Figure 13.3 shows the demand and cost curves for a monopolist.
-Refer to Figure 13.3.What is likely to happen to this monopoly in the long run?

• A)New firms will enter the market to eliminate its profits.
• B)It will expand its output to take advantage of economies of scale so as to further increase its profit.
• C)As long as there are entry barriers, this firm will continue to enjoy economic profits.
• D)It will be regulated by the government because of its excess profits.

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Definitions:

Ethological Theory

A perspective in psychology that emphasizes the genetic and evolutionary mechanisms behind behaviors and how they contribute to survival.

Biological Basis

The foundation of behaviors, abilities, or diseases in genetic, neurological, or physiological processes within the body.

Skinnerian

Relating to the theories of B.F. Skinner, emphasizing behaviorism and the use of reinforcement to modify behavior.

Aggressive Behavior

Actions intended to cause harm or pain to others, often driven by anger or hostility.