Related to the Economics in Practice on Page 201: If

question 75

Multiple Choice

Related to the Economics in Practice on page 201: If the long-run average cost curve in an industry has a long, flat section, which of the following must be true?

• A) There is no single point on the curve that is the best.
• B) Small firms have higher average costs than large firms.
• C) Existing firms have no incentive to expand.
• D) There would be no difference between the industry's short-run average cost curve and its long-run average cost curve.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.