Suppose the Demand Function in the Industry Is P =

question 55

Multiple Choice

Suppose the demand function in the industry is p = 100 - y and each firm has a constant marginal cost of $40. Suppose there is a monopoly firm and a potential entrant. The residual demand is given by:

• A)y = 70 - 2p.
• B)y = 70 - p.
• C)y = 60 - p.
• D)y = 60 - 2p.

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Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and personal responsibility, often occurring within groups and leading to uninhibited behaviors.

Zimbardo

Refers to Philip Zimbardo, an American psychologist known for his Stanford prison experiment, exploring the psychological effects of perceived power.

Crowd-as-group

A collection of individuals who are present at the same location or event, but act with a shared purpose or group identity.

Crowd-as-mad

The stereotypical view that crowds are irrational, emotional, and capable of violence, overlooking the potential for rational collective behavior.