-Bob Is the Only Carpet Installer in a Small Isolated

question 18

Multiple Choice

-Bob is the only carpet installer in a small isolated town.The above figure shows the demand curves of two distinct groups of customers-residential and business.If the marginal cost of installing carpet is a constant $1 per sq yard,what price does Bob charge each segment?

• A) $1 in each market
• B) $5.50 in the residential market and $8 in the business market
• C) $1 in the residential market and $5 in the business market
• D) $10 in the residential market and $15 in the business market

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Definitions:

Tort Action

A legal claim in civil law where a plaintiff seeks compensation for harm or injury caused by the defendant's wrongful act, neglect, or infringement of rights.

Noneconomic General Damages

Compensation for non-monetary losses in a lawsuit, such as pain and suffering or emotional distress.

Tort Action

A legal action for civil wrongs that cause harm or loss, leading to legal liability for the person who commits the tort.

Actual Malice

A condition that exists when a person makes a statement with either knowledge of its falsity or reckless disregard for the truth. In a defamation suit, a statement made about a public figure normally must be made with actual malice for liability to be incurred.