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

question 96

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 is the monopoly price of this new drink?

• A) 0
• B) $3
• C) $13.50
• D) $16.50
• E) $27

Understand the different types of markets and their functions within the financial system.

Differentiate between primary and secondary markets.

Recognize the role and significance of financial intermediaries in the financial system.

Understand the concept of investment term and maturity and the implications for financing.

---

Definitions:

Communication

The process of transferring information, ideas, emotions, and intentions between individuals through verbal, non-verbal, written, or visual means.

New Technology

Innovative or recently developed technological tools, systems, or methods.

Part-Time Work

Employment with fewer hours per week than a full-time position, allowing for flexibility or other commitments.

Involuntary Workers

Individuals who are employed against their will, often under threat of punishment or within coercive environments.