A Monopolist Faces the Least Price Elastic Demand Curve Because

question 30

Multiple Choice

A monopolist faces the least price elastic demand curve because:

• A)the consumers have only one place to buy the good.
• B)the monopolist produces a standardized product.
• C)the monopolist undertakes a huge expenditure to produce the product.
• D)the monopolist supplies an insignificant portion of the market.
• E)the monopolist produces an absolutely necessary good having close substitutes.

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Definitions:

Stimulus Generalization

The tendency to respond in the same way to different but similar stimuli.

Stimulus Adaptation

A decrease in response to a stimulus after repeated presentations, as the receptor cells become less sensitive to the stimulus.

Response Generalization

The tendency for the effects of training in one response to spread to other, similar responses.

Transfer of Habit Strength

The process by which the learning and strengthening of a habit in one context or task can influence performance in another context or task.