-Bob Is the Only Carpet Installer in a Small Isolated

question 18

Multiple Choice

-Bob is the only carpet installer in a small isolated town.The above figure shows the demand curves of two distinct groups of customers-residential and business.If the marginal cost of installing carpet is a constant $1 per sq yard,what price does Bob charge each segment?

• A) $1 in each market
• B) $5.50 in the residential market and $8 in the business market
• C) $1 in the residential market and $5 in the business market
• D) $10 in the residential market and $15 in the business market

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Definitions:

Need to Achieve

An individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Tolerance for Failure

The extent to which an individual or organization is willing to accept and learn from failures without significant negative consequences.

Angel Investor

An affluent individual who provides capital for a business start-up, usually in exchange for convertible debt or ownership equity.

Equity

Ownership interest in a firm, represented by shares that entitle their holders to a share in the firm's profits and a say in its management.