Use the Following to Answer Questions

question 45

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets with no marginal cost or fixed cost. Suppose that these two producers have formed a cartel, agreed to split production of output evenly and are maximizing total industry profits. If Margaret decides to cheat on the agreement and sell 100 more gadgets but Ray continues to sell 250 gadgets, Ray's profits will be:

• A) $1,400.
• B) $1,250.
• C) $1,000.
• D) $400.

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Definitions:

Negative Avoidance

A learning process where actions are taken to prevent an unpleasant outcome or stimuli.

Stimulus Discrimination

The learned ability to differentiate between similar stimuli and respond only to the specific stimulus conditioned.

Instinctive Drift

The tendency for animals to revert to instinctual behaviors, overriding learned behaviors from operant conditioning.

Renewal Effect

The psychological phenomenon where previously extinguished responses reappear upon return to the original context.