A Controlled Experiment Is One That

question 15

Multiple Choice

A controlled experiment is one that

• A) proceeds slowly enough that a scientist can make careful records of the results.
• B) tests experimental and control groups in parallel.
• C) is repeated many times to make sure the results are accurate.
• D) keeps all variables constant.
• E) is supervised by an experienced scientist.

Explain the role and impact of supply curves in pure competition and monopoly.

Interpret the effects of monopoly on pricing and economic profits.

Discuss personalized pricing and the role of Big Data in online retail.

Define and explain network effects and their contribution to economies of scale.

---

Definitions:

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Consumer Behavior

The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs.

Equilibrium

A state where supply and demand balance each other, and as a result, prices become stable.

MU/P

Marginal Utility per Price, a concept in economics that represents the additional utility or satisfaction obtained per unit of expenditure.