The Figure Given Below Represents Two Monopolists James and Jerry

question 65

Multiple Choice

The figure given below represents two monopolists James and Jerry.James produces Good A using the input Good B which is produced by Jerry and has no other variable costs.James is the only consumer of Good B, and the marginal cost incurred by Jerry to produce Good B is zero.DA and DB represent the demand curves for Good A and Good B respectively.MRA and MRB represent the marginal revenue received from Good A and Good B respectively.It takes one unit of A to produce a unit of B.


-Refer to Figure .Calculate the profit earned by James in the absence of cooperation between the two monopolists.

• A)$24
• B)$12
• C)$6
• D)$36

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Definitions:

In-group-out-group Bias

The tendency to favor members of one's own group over those in other groups, leading to prejudice and discrimination.

Skepticism

A philosophical approach that questions the validity or authenticity of something purported to be factual.

Dogmatism

A tendency to lay down principles as incontrovertibly true, without consideration of evidence or the opinions of others.

Applied Social Psychology

The use of social psychological theories and principles to understand and address real-world problems and improve the quality of social life.