You Believe That You Have a Costless Monopoly

question 39

Multiple Choice

You believe that you have a costless monopoly. Given your estimate of the one day demand for mushrooms:
Q_m = 1050 - 150P_m
Where Q_m = servings of fried mushroom and gravy. What price and quantity would yield you the most revenue?

• A) P = $3.50, Q = 525
• B) P = $3.50, Q = 1050
• C) P = $7.00, Q = 525
• D) P = $7.00, Q = 1050
• E) none of the above

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Definitions:

Repression

A psychological defense mechanism where distressing thoughts, memories, or impulses are unconsciously pushed out of conscious awareness.

Semantic Memory

A type of long-term memory involving the storage of general knowledge, facts, concepts, and meanings not tied to specific experiences.

Concepts

Mental representations or understandings of categories or classifications of objects, events, or people, based on shared properties or characteristics.

Events

Occurrences or happenings that take place in a specific time and place, often noteworthy.