Use the Following Diagram to Answer the Following Questions

question 77

Multiple Choice

Use the following diagram to answer the following questions.

-Refer to Diagram 5-2. The price and output that maximize the monopolist's profits are:

• A) P₁ and Q₁, respectively.
• B) P₁ and Q₂, respectively.
• C) P₂ and Q₁, respectively.
• D) P₂ and Q₂, respectively.

---

Definitions:

Normative Social Influence

Influence resulting from a person’s desire to gain approval or avoid disapproval.

Shoplift

The act of stealing goods from a retail establishment without paying for them.

Fundamental Attribution Error

The tendency to overestimate the effect of personality or disposition and underestimate the influence of situational factors when explaining others' behavior.

Peripheral Route Persuasion

Attitude-change path in which people are influenced by incidental cues, such as a speaker’s attractiveness.