A Firm with Market Power Faces the Demand Function Q

question 131

Multiple Choice

A firm with market power faces the demand function q = 150 - 10P. The firm's marginal cost function is MC(q) = 2 + 0.1q. If the firm establishes a block-pricing structure with two prices, the lower price that the firm will use to maximize producer surplus is $____.

• A) 9.76
• B) 8.63
• C) 7.45
• D) 6.42

---

Definitions:

Observable Artifacts

Tangible or visible elements in an organization's culture, such as dress codes, office layout, and rituals.

Strengths-Based Management

A management philosophy focusing on optimizing an organization's performance by recognizing and leveraging the strengths of its employees rather than focusing predominantly on their weaknesses.

Public Speaking

The act or process of making speeches in public, often requiring skills in persuasion, oration, and confidence.

Opening Address

The initial speech or statement given at the start of an event or presentation, setting the tone or agenda.