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.

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Definitions:

Unhealthy Drinking Patterns

Drinking behaviors that exceed moderate levels and have the potential to lead to alcohol abuse or dependence, along with various health and social problems.

Negative Events

Unpleasant or harmful occurrences that can cause emotional distress, physical harm, or life challenges.

Growing Older

The process of aging, which encompasses biological, psychological, and social changes that occur over time in human beings.

Schizophrenia

A psychiatric disorder marked by delusions, hallucinations, disorganized speech, and impaired cognitive function.