In a Perfectly Competitive Market, What Would You Expect to Happen

question 163

Essay

In a perfectly competitive market, what would you expect to happen to the number of firms and firm profitability in the short run and long run if demand for the product rises?

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Definitions:

Forgetting

A decrease in a response as a result of not being able to display it over time. Forgetting involves preventing a response from occurring for some period after it has been conditioned.

Withholding Reinforcement

A behavioral strategy involving the absence or delay of a reinforcement to decrease or eliminate an undesired behavior.

Passage of Time

The progression or flow of time characterized by changes and events.

Backward Chaining

A method for teaching a stimulus–response chain. When backward chaining is used, the reinforcing power of the positive reinforcer (presented at the end of the chain) is transferred “down the line” to each discriminative stimulus as it is added to the chain. This makes for very efficient use of positive reinforcement to establish a strong chain.