The Following Figures Show the Demand and Cost Curves of a Perfectly

question 71

Multiple Choice

The following figures show the demand and cost curves of a perfectly competitive and a monopoly firm respectively. Figure 10.7
D: Average Revenue
AC: Average cost
MC: Marginal cost
MR: Marginal cost
-According to Figure 10.7,when the monopolist is maximizing profit:

• A)its resources are not being used efficiently.
• B)its price is higher than that charged by the perfectly competitive firm.
• C)its price is equal to the price charged by the perfectly competitive firm.
• D)it is earning above-normal profit.
• E)it is actually incurring a loss.

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Definitions:

Inappropriate Behaviors

Actions or responses that are not suitable or proper in a given context, potentially causing discomfort or offense to others.

Token Economy

A behavior modification system that utilizes tokens as reinforcement for desirable behaviors, which can be exchanged for rewards.

Modeling

The process of imitation or simulation, often used in learning or in the analysis of complex systems by replicating behaviors, patterns, or activities.

Self-Defeating Thoughts

Negative and often irrational beliefs or inner narratives that undermine one’s confidence and potential for success.