Long-Run Equilibrium Under Monopolistic Competition Is Similar to Long-Run Equilibrium

question 204

Multiple Choice

Long-run equilibrium under monopolistic competition is similar to long-run equilibrium under perfect competition in that

• A) firms produce at the minimum point of their average cost curves.
• B) price equals marginal cost.
• C) firms break even.
• D) price equals marginal revenue.

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Definitions:

Skinner

B.F. Skinner, a psychologist and behaviorist known for his development of the operant conditioning theory, emphasizing the influence of external stimuli on behavior.

Biological Predisposition

Rephrased from Genetic Predispositions: The inherent genetic makeup that increases the likelihood of an individual developing certain conditions or traits.

Generalization

The process by which individuals apply learned responses to similar but not identical stimuli.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.