A Profit-Maximizing Firm in a Monopolistically Competitive Market Differs from a Firm

question 481

Multiple Choice

A profit-maximizing firm in a monopolistically competitive market differs from a firm in a perfectly competitive market because the firm in the monopolistically competitive market

• A)chooses its profit-maximizing quantity where marginal revenue equals marginal cost.
• B)sells its product in a highly-concentrated market.
• C)faces a downward-sloping demand curve for its product.
• D)can earn profits in the long run.

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Definitions:

Conditioned

In psychology, refers to behavior that is developed or learned in response to specific environmental stimuli.

Reinforcer

Any stimulus or event that increases the likelihood of a behavior being repeated, which can be positive (adding something desirable) or negative (removing something aversive).

Desired Response

The specific behavior that is sought after in a behavioral intervention or training program.

Effectiveness

The degree to which something is successful in producing a desired result or outcome.