A Single-Price Monopolist Is Currently Producing an Output Level Where

question 116

Multiple Choice

A single-price monopolist is currently producing an output level where P = $320,MR = $260,ATC = $280,and MC = $200.In order to maximize profits,this monopolist should

• A)produce zero output.
• B)increase production and reduce price
• C)decrease production and increase price.
• D)not change the output level because the firm is currently at the profit-maximizing output level.
• E)There is insufficient information to make a recommendation.

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Definitions:

Fixed Interval Schedule

A reinforcement schedule in operant conditioning where the first response is rewarded only after a specified amount of time has elapsed.

Unpleasant Consequences

Negative outcomes or penalties that follow undesirable behaviors, aimed at reducing those behaviors.

Negative Reinforcement

A reinforcement contingency through which behaviors are followed by the removal of previously experienced negative consequences, resulting in the likelihood that the behavior will occur again in the same or similar situations.

Positive Reinforcement

A reinforcement contingency through which behaviors followed by positive consequences, are more likely to occur again in the same or similar situations.