Competitive Markets

question 24

Short Answer

Competitive Markets. Indicate whether each of the following statements is true or false and why.
A. In long-run equilibrium, every firm in a perfectly competitive industry earns an economic profit.
B. Pure competition exists in a market when firms are price makers as opposed to price takers.
C. A natural monopoly results when the profit-maximizing output level occurs at a point where long-run average costs are decreasing.
D. Downward-sloping industry demand curves characterize monopoly markets; horizontal demand curves characterize perfectly competitive markets.
E. A decrease in the price elasticity of demand would follow an increase in monopoly power.

Determine the applicability and limitations of different research methods.

Understand operational definitions and their role in research.

Comprehend the principles of correlational research and its implications.

Understand the concept of correlation and how it is quantified.

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Definitions:

Reinforcement

In the context of psychology, a process by which a stimulus increases the probability of a preceding behavior.

B.F. Skinner

An influential American psychologist known for his work in the field of behaviorism, particularly the development of the theory of operant conditioning.

Positive Outcomes

Favorable results or consequences that result from specific actions or events.

Organisms

Living entities that can function autonomously, consisting of one or more cells.