Refer to the Accompanying Figure to Answer the Following Questions

question 114

Multiple Choice

Refer to the accompanying figure to answer the following questions.

-Deadweight loss exists in a monopoly because the monopolist

• A) charges a price equal to marginal cost,which is higher than the price charged in a competitive market.
• B) produces a quantity that is higher than the quantity produced in a competitive market.
• C) makes a positive economic profit in the short run.
• D) charges a price below marginal cost.
• E) charges a price that is above marginal revenue.

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Definitions:

Psychopathology

The study of psychological disorders, their symptoms, etiology (causes), and treatment.

Diathesis-stress

A psychological theory that explains behavior as both a result of biological and genetic factors ("diathesis"), and life experiences ("stress").

Etiology

The study of the causes or origins of diseases or disorders.

Diathesis-stress Model

A psychological theory that attempts to explain a disorder, or its trajectory, as the result of an interaction between a predispositional vulnerability and stress caused by life experiences.