If Firms in a Competitive Market Are Not Identical,then an Increase

question 10

Multiple Choice

If firms in a competitive market are not identical,then an increase in cost will

• A) shift marginal cost to the right.
• B) push the most inefficient firms out of the market.
• C) push the most efficient firms out of the market.
• D) Need more information.

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Definitions:

Behavioral Economists

Researchers who study the psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Feelings About Fairness

The emotions and perceptions regarding the fairness or equity of actions, decisions, or distributions among individuals or groups.

Ultimatum Game

A game in experimental economics where one player proposes how to divide a sum of money with another player, who can either accept or reject the proposal.

Behavioral Economics

A field of economic research that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.