Answer the Question on the Basis of the Accompanying Table

question 384

Multiple Choice

Answer the question on the basis of the accompanying table, which shows the demand schedule facing a nondiscriminating monopolist. Assume that this monopolist faces zero production costs. The profit-maximizing monopolist will set a price of

• A)$10.
• B)$1.
• C)$7.
• D)$5.

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Definitions:

Blinking

A rapid closing and opening of the eyelid, which is an involuntary reflex to protect the eye from irritants and distribute tear fluid.

Respondent Behavior

Actions that occur as an automatic response to some stimulus, typically conditioned through learning processes.

Stimulus

Any event or situation that evokes a response.

Automatic Response

A reflexive, involuntary reaction to a stimulus, which occurs without conscious thought, often as a result of learned behaviors or innate reflexes.