In a Perfectly Competitive Market Structure Any Firm Can Enter

question 22

Multiple Choice

In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies

• A) the products sold will be alike.
• B) firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment.
• C) no one buyer or seller has any influence on price.
• D) consumers are able to find out about lower prices charged by other firms.

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Definitions:

Behavioral Contrast

occurs when a change in the condition of reinforcement in one context leads to a change in behavior in another context.

Higher-order Conditioning

A form of conditioning in which a stimulus that has become a conditioned stimulus is paired with a new neutral stimulus, creating a second conditioned stimulus.

Opponent Process

A theory suggesting that emotions are regulated by mechanisms that operate in opposing pairs, allowing for emotional adaptation over time.

Behavioral Contrast

The phenomenon where the rate of response varies inversely with an alteration in the reinforcement conditions, observed across different contexts or schedules of reinforcement.