Refer to the Information Provided in Table 13 -Refer to Table 13

question 386

Multiple Choice

Refer to the information provided in Table 13.1 below to answer the question(s) that follow.
Table 13.1
$$\begin{array} { | c | c | } \hline \text { Price } ( \$ ) & \text { Quantity } \\\hline 4.00 & 2,000 \\\hline 3.50 & 2,400 \\\hline 3.00 & 2,800 \\\hline 2.50 & 3,200 \\\hline 2.00 & 3,600 \\\hline 1.50 & 4,000 \\\hline 1.00 & 4,400 \\\hline\end{array}$$
-Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what price should it charge per unit of output so as to maximize its profits?

• A) $4.00
• B) $3.50
• C) $3.00
• D) $2.50

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Definitions:

Heider's

Fritz Heider's attribution theory focuses on how people interpret events and relate them to their thinking and behavior.

Balance Theory

A psychological theory proposing that individuals strive for psychological consistency in their relationships and beliefs, leading them to change attitudes or relationships to maintain balance.

Relationships

Connections or associations between people, based on kinship, love, solidarity, professional interactions, or other social commitments.

Aronson and Carlsmith

Researchers known for their work in social psychology, particularly for studies on cognitive dissonance.