Table 132 Onawy Inc Has Been Granted a Patent for Its Birch Root

question 34

Multiple Choice

Table 13.2
$\begin{array}{|c|c|c|}\hline \text { Price per Dose } & \begin{array}{c}\text { Quantity } \\\text { Demanded } \\\text { (dose) }\end{array} & \begin{array}{c}\text { Total Cost of } \\\text { Production } \\\text { (dollars) }\end{array} \\\hline \$ 80 & 0 & \$ 80 \\\hline 72 & 1 & 82 \\\hline 64 & 2 & 88 \\\hline 56 & 3 & 100 \\\hline 48 & 4 & 124 \\\hline 40 & 5 & 164 \\\hline 32 & 6 & 208 \\\hline 24 & 7 & 268 \\\hline 16 & 8 & 340 \\\hline\end{array}$
Onawy Inc. has been granted a patent for its birch root toothache balm. Table 13.2 shows the demand and the total cost schedule for the firm.
-Refer to Table 13.2.What is the approximate deadweight loss generated by Onawy when it produces the monopoly output?

• A)$124
• B)$42
• C)$36
• D)$12

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Definitions:

Generalization

The process in which a response is elicited by stimuli that are similar to the original conditioned stimulus in classical conditioning.

Flooding

Flooding is a psychological treatment method where an individual is exposed to a large amount of their fear object or context until the fear diminishes.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared stimulus while practicing relaxation techniques.