Consider the Following fiX Prix Menu

question 18

Multiple Choice

Consider the following fix prix menu. You have two choices of appetizer, soup or shrimp cocktail,
Three choices for your entree, roast beef, chicken cordon blue, or vegetarian lasagne, and two
Choices for dessert, chocolate cake or apple pie. Which tree diagram below accurately describes
This situation?

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Definitions:

Pure Monopoly

An economic situation where only one supplier dominates the entire market offering for a specific commodity or service, with no nearly identical alternatives available.

Price Maker

A firm with the power to influence the price at which it sells its product, typically because it does not face significant competition.

Purely Monopolistic

A market structure where a single supplier has exclusive control over the production and sale of a unique product without close substitutes, leading to significant market power.

Downsloping Demand Curve

A graphical representation in economics showing that as the price of a good or service decreases, the quantity demanded increases, and vice versa.