A Monopoly Coffee Shop Is Deciding on a Menu of Different

question 12

Multiple Choice

A monopoly coffee shop is deciding on a menu of different cup sizes to sell to a population of consumers,some of whom are high demanders and some low demanders.How would the optimal menu differ depending on whether the consumers can be observably separated into the different types or not?

• A) the menu is unaffected by type observability.
• B) if types aren't observable, the large cup size should be increased to separate the high demander.
• C) if types aren't observable, the small cup size should be increased to make it more attractive to low demanders.
• D) if types aren't observable, the small cup size should be reduced to make it less attractive to high demanders.

---

Definitions:

Commit

To commit is to pledge or dedicate oneself to a cause, activity, or task with a sense of responsibility and earnestness.

Job Offers

Proposals or invitations for employment, typically extended by employers to potential employees after a successful interview or recruitment process.

Except

Used to specify a exclusion, indicating a scenario or instance that does not follow the general rule.

Chronic Stress

A prolonged and constant feeling of stress that can deteriorate one’s health and well-being.