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In an experiment, a rat was placed on a small platform. When this rat stepped down to the floor, it received a painful electric shock. After one shock, this rat would not step down to the floor when placed on the platform. A second rat also stepped down to the floor from the platform and received a painful shock but was immediately administered an electroconvulsive shock (ECS) to its brain. How did the ECS affect this second rat's behavior?
Monopolistic Competition
A market structure characterized by the presence of several firms that sell similar, but slightly differentiated, products and services where each has some control over its prices.
Zero Economic Profits
A situation in perfectly competitive markets where firms earn just enough revenue to cover their total operating costs, leaving no supernormal profit.
Positive Economic Profits
The situation in which a firm's total revenues exceed its total costs, including both explicit and implicit costs, signaling that the firm is doing better than the next best alternative.
Profit
The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.
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