A monopoly is a situation of legal privilege or market failure, in which there is a producer or economic agent (monopolist) that has a great market power and is the only one in a given industry that has a product, good, resource or service determined and differentiated. The monopolist controls the quantity of production and the price, although not simultaneously, since the choice of production or price determines the position one has regarding the other; that is to say, the monopoly could first determine the production rate that maximizes its profits and then determine, by using the demand curve, the maximum price that can be charged to sell said production.
The law of effect is a principle in Psychology that was originated by Edward Thorndike in 1898. This principle reflected behavioral conditioning, however behavioural conditioning had not been formulated at the time. The principle states that responses that cause positive or satisfactory effects in a particular situation become more likely to occur in that situation again.
<span>The lottery states that people are willing to sacrifice their hard earned money for the very slim chance of profiting. Many people believe that if they play the lottery every week or if they play the same numbers (tradition) that they will eventually win.</span>
