It Has Been Argued That a Monopolistically Competitive Industry Involves

question 254

Multiple Choice

It has been argued that a monopolistically competitive industry involves "waste" because

• A) there is too much product differentiation making shelves too crowded.
• B) they end up producing to the right of the minimum of the average total cost curve and the price is below the marginal cost.
• C) the firms do not equate marginal cost to marginal revenue to find the profit maximizing price and output.
• D) the firms do not produce at the minimum of the average total cost curve and price is above marginal cost.

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Definitions:

Aggressively

In a manner that is forceful, assertive, or intent on dominating or achieving one's goals, sometimes implying a readiness to confront or attack.

Negative Reinforcement

A behavior modification technique that involves the removal of an unpleasant stimulus to increase the likelihood of a desired behavior being repeated.

Extinction

In behavioral psychology, the process where a conditioned response decreases in frequency and eventually disappears when the stimulus is no longer presented.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned, often becoming apparent under different conditions.