Refer to the Demand and Cost Data for a Pure

question 156

Multiple Choice

Refer to the demand and cost data for a pure monopolist given in the table. If the monopolist perfectly price-discriminated and sold each unit of the product at the maximum price the buyer of that unit would be willing to pay, and if the monopolist maximized profits, then the total profit received would be

• A)$700.
• B)$190.
• C)$540.
• D)$70.

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Definitions:

Parking Brakes

A secondary braking system, usually mechanically operated, designed to hold a vehicle stationary when parked.

Trailer Lock

A security device or mechanism designed to prevent the unauthorized detachment or theft of a trailer by locking it to the towing vehicle or immobilizing its wheels.

Severe Braking

A situation where brakes are applied forcefully and suddenly, often in an emergency, to reduce vehicle speed quickly.

Brake Fade

Caused by a number of factors mostly relating to reduction in the coefficient of friction of brake friction materials. Thermal expansion of brake drums under prolonged braking tends to enlarge drum diameters, meaning that the actuation mechanisms such as slack adjusters no longer function at optimum mechanical efficiency, which makes brake fade more of a problem in drum brake systems.