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

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Definitions:

Downward Social Comparisons

Comparing oneself with others who are worse off in order to feel better about one's own situation.

Upward Social Comparisons

Comparing oneself with others who are perceived to be superior in some way, which can affect one's self-esteem and motivations.

Social Comparison Theory

A theory suggesting that individuals determine their own worth based on how they stack up against others.

Academic Self-concept

An individual's perceptions, beliefs, and feelings about their academic abilities and potential, influencing motivation and performance in educational settings.