In Monopoly

question 234

Multiple Choice

In monopoly:

• A) because P > MC, a basic condition for efficiency is violated.
• B) consumers are confronted with a price that is lower than marginal cost.
• C) consumers will consume more of the good than is economically efficient.
• D) all of the above are true.

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Definitions:

Dishabituation

Increase in responsiveness after presentation of a new stimulus.

Habituation

The method through which a person becomes used to a stimulus by being exposed to it multiple times, resulting in a reduced reaction.

Perceptual Skills

Abilities related to the interpretation of sensory input, such as recognizing patterns, objects, and spatial relationships.

Dishabituation

A renewal of response in a habituated organism following the presentation of a novel stimulus.