As a Monopolist Increases the Quantity of Output Produced, What

question 242

Multiple Choice

As a monopolist increases the quantity of output produced, what happens to price (P) and marginal revenue (MR) ?

• A)both P and MR remain constant
• B)P is constant, but MR decreases
• C)P decreases, but MR is constant
• D)both P and MR decrease, but P falls faster than MR
• E)both P and MR decrease, but MR falls faster than P

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Definitions:

Fear Response

The instinctual reaction to perceived danger or threat, involving physiological changes like increased heart rate, aimed at preparing the body for fight or flight.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Extinction

Extinction refers to the process in behavioral psychology where a conditioned response decreases in frequency and eventually disappears when the reinforcement stops.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers an unconditioned response without any learning needed.