Assume a Monopolist Can Prevent Resale of Its Product and It

question 136

Multiple Choice

Assume a monopolist can prevent resale of its product and it has complete information about each one of its customers. Even though each customer has a different demand curve, the seller can identify each customer's demand curve before a purchase takes place. It faces the inverse market demand of P = 160 - 10Q with marginal cost of MC = 10 + 5Q. The total surplus at the profit-maximizing result is $____.

• A) 500
• B) 400
• C) 200
• D) 0

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Definitions:

Environmental Influences

External factors that impact an individual's behavior, development, and lifestyle, including social, cultural, and physical environments.

Social Pressures

The influence exerted by society or social groups on individuals to conform to expected norms or behaviors.

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Actions taken by individuals that affect their health, either positively or negatively.

Theory of Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place. It considers attitudes, subjective norms, and perceived behavioral control.