Suppose That the Demand for a Monopolist's Product Is Estimated

question 36

Multiple Choice

Suppose that the demand for a monopolist's product is estimated to be Q^d = 100 − 2P and its total costs are C(Q) = 10Q.Under first-degree price discrimination,the optimal price(s) ,number of total units exchanged,profit,and consumer surplus are:

• A) P = $30; Q = 40,  = $800; CS = $400.
• B) 10  P  100; Q = 80;  = $1,600; CS = $1,600.
• C) 10  P  50; Q = 80,  = $1,600; CS = $0.
• D) P = $30; Q = 40,  = $600; CS = $0.

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Definitions:

Groupthink

A psychological phenomenon in which the desire for harmony in a decision-making group leads to an irrational or dysfunctional decision-making outcome.

Conformity

The act or behavior of aligning one's beliefs or actions to those of a group or social norm, often due to real or perceived group pressure.

Conformity

Adjusting one's behavior or thinking to match those of a group standard.

Incorrect Majority

The phenomenon where a group wrongfully influences an individual or minority to conform to a mistaken or inaccurate viewpoint.