Conclusions About the Misallocation of Resources Under Conditions of Monopoly

question 330

Multiple Choice

Conclusions about the misallocation of resources under conditions of monopoly depend, in part, on the crucial assumption that

• A) monopolies are interested in economic profits and competitive firms are not.
• B) the monopolization of a perfectly competitive industry does not change the cost structure of the industry.
• C) the economies of scale exist only in perfectly competitive industries.
• D) the marginal cost curve of a monopolist is different from that of a perfectly competitive firm.

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Definitions:

Voluntary Responses

Behaviors that are the result of conscious decision making, contrasting with automatic or reflexive actions.

Thorndike

An American psychologist known for his work in educational psychology and the theory of learning based on the principle of reinforcement.

Taste Aversions

A learned negative reaction to a particular taste after it has been associated with illness or discomfort, demonstrating a form of classical conditioning.

Instrumental Conditioning

A type of learning where a behavior is strengthened or weakened, based on the behavior's consequences; also known as operant conditioning.