Firms in Perfect Competition Produce the Allocatively Efficient Output in the Short

question 282

True/False

Firms in perfect competition produce the allocatively efficient output in the short run and in the long run.

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Definitions:

Behavior Modification

The direct and systematic application of principles of learning to change maladaptive or unwanted behaviors into more desirable behaviors.

Reciprocal Determinism

A theory proposed by Albert Bandura that suggests human behavior, personal factors, and the environment continually interact and influence each other.

Extinction

The process through which a conditioned response diminishes over time as it is no longer reinforced.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired together; an unconditioned stimulus (which evokes an unconditioned response) is paired with a conditioned stimulus until the conditioned stimulus alone elicits a conditioned response.