Production by a Monopoly Would Result in the Socially Optimal

question 51

Multiple Choice

Production by a monopoly would result in the socially optimal allocation of resources if

• A)price is set equal to marginal cost
• B)marginal revenue is set equal to price
• C)marginal revenue is set equal to marginal cost
• D)price is set equal to average total cost
• E)marginal revenue is set equal to average total cost

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments to influence behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Temperament

Refers to the inherent part of an individual's personality and character affecting their behavior and reactions.

Biological Functions

The processes and activities carried out by living organisms to maintain life, including growth, reproduction, and response to stimuli.