That Individuals Are Rational and Capable of Collective Action That

question 5

Multiple Choice

That individuals are rational and capable of collective action that can help moderate or eliminate aggression is one of the central tenets of the foundations of ________ thinking.

• A) Marxist
• B) realist
• C) liberal
• D) constructivist

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Definitions:

Economic Inefficiency

A situation where resources are not optimally allocated, leading to waste or a loss of potential value in an economy.

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, determined where marginal revenue equals marginal cost.

MC > P

A situation where the marginal cost of producing an additional unit is greater than the price at which it can be sold, suggesting that production should be decreased.

Pure Monopolist

A firm that is the sole seller of a product or service in a market, without any close substitutes, possessing significant market power.