A Firm with Market Power Faces the Demand Function Q

question 125

Multiple Choice

A firm with market power faces the demand function q = 1,000 - 100P. The firm's marginal cost function is MC(q) = 2 + 0.08q. If the firm establishes a block-pricing structure to maximize producer surplus, the optimal price for the higher priced block is $____.

• A) 3.92
• B) 3.79
• C) 3.83
• D) 3.61

---

Definitions:

Glycogen Cascade

A biochemical process involving the breakdown of glycogen into glucose to provide energy for cellular processes.

General Adaptation Syndrome

a theory proposed by Hans Selye that describes the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Hans Selye

A pioneering Hungarian-Canadian endocrinologist who formulated the General Adaptation Syndrome, describing the body's short-term and long-term reactions to stress.

Socioeconomic Status (SES)

An individual or group's economic and social position in relation to others, based on income, education, and occupation.