The Profit-Maximising Level of Output and the Profit-Maximising Price for an Oligopolist

question 38

Multiple Choice

The profit-maximising level of output and the profit-maximising price for an oligopolist cannot be calculated when we don't know

• A)what the concentration ratio for the oligopolist's industry is.
• B)what the minimum efficient scale in the oligopolist's industry is.
• C)the demand curve and the marginal revenue curve of the oligopolist.
• D)the type of barrier to entry that exists in the oligopolist's industry.

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Definitions:

Fixed Ratio Schedule

A reinforcement schedule in operant conditioning where a response is reinforced only after a specified number of responses, promoting a high and steady rate of responding.

Operant Conditioning

A method of learning where the intensity of a behavior is altered through rewards or penalties.

Extinction

The process whereby a conditioned response decreases in frequency and eventually disappears as a result of the conditioned stimulus being presented without the unconditioned stimulus.

Reinforcement

A stimulus or event that increases the likelihood of a behavior being repeated, it can be positive (adding) or negative (removing).