Figure 10-9 Figure 10-9 Shows the Demand and Cost Curves

question 116

Multiple Choice

Figure 10-9
Figure 10-9 shows the demand and cost curves for a monopolist.
-Refer to Figure 10-9.What is the difference between the monopoly's price and perfectly competitive industry's price?

• A) The monopoly's price is higher by $9.50.
• B) The monopoly's price is higher by $13.
• C) The monopoly's price is higher by $3.50.
• D) The monopoly's price is higher by $21.

---

Definitions:

Satisfaction

A measure of how products or services meet or surpass customer expectation.

Postpurchase Cognitive Dissonance

The psychological conflict or anxiety that consumers may experience after making a difficult purchase decision, often involving doubt about the purchase.

Cognitive Bias

is a systematic pattern of deviation from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.

Psychological Risk

The potential for a purchase or consumption decision to lead to negative psychological outcomes, such as disappointment, regret, or a challenge to one's self-image.