Scenario 12.2: Suppose a Stream Is Discovered Whose Water Has Remarkable Healing

question 92

Multiple Choice

Scenario 12.2:
Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows:
P = 30 - Q
The marginal cost to produce this new drink is $3.
-Refer to Scenario 12.2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly?

• A) $3
• B) $9
• C) $12
• D) $13.50
• E) none of the above

---

Definitions:

Axon

is a long, slender projection of a nerve cell that conducts electrical impulses away from the neuron's cell body.

Neurotransmitters

Chemical messengers that transmit signals across the synaptic space from one neuron to another in the brain.

Neural Impulse

An electrical signal that travels along the axon of a neuron, transmitting information between neurons or from neurons to muscles.

Spinal Cord

The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, acting as the principal pathway for transmitting information between the brain and the rest of the body.