The Price of a Factor in a Monopolistic Factor Market

question 83

Multiple Choice

The price of a factor in a monopolistic factor market, as compared to a situation where the monopoly supplier is broken up into a large number of firms selling the factor in a perfectly competitive factor market:

• A) is greater than the price of a factor in an otherwise perfectly competitive factor market.
• B) is less than the price of a factor in an otherwise perfectly competitive factor market.
• C) is equal to the price of a factor in an otherwise perfectly competitive factor market.
• D) increases with the quantity of the factor sold.

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Definitions:

Conditioned Stimulus

An initially neutral trigger that, after association with an unconditioned stimulus, leads to a conditioned response over time.

Little Albert

The subject of a famous psychology experiment by John B. Watson and Rosalie Rayner illustrating classical conditioning through inducing a fear response in a young child.

White Rat

Often used in laboratory experiments, this is a rat breed known for its white fur, frequently utilized in psychological and medical research.

Experimental Attempts

Trials or efforts made to test hypotheses in controlled conditions to observe and measure outcomes in scientific research.