Wobble's Weebles Is the Only Producer of Weebles

question 18

Multiple Choice

Wobble's Weebles is the only producer of weebles. It makes weebles at constant marginal cost c(where c > 0) and sells them at a price of p₁ per weeble in market 1 and at a price of p₂ per weeble in market 2. The demand curve for weebles in market 1 has a constant price elasticity of demand equal to -2. The demand curve for weebles in market 2 has a constant price elasticity equal to - . The ratio of the profit-maximizing price in market 1 to the profit-maximizing price in market 2 is

• A) 2/3
• B) 1/3
• C) 3/2
• D) 3
• E) dependent on the value of

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Definitions:

Reactive

Refers to responding to stimuli after they have occurred, rather than anticipating or initiating action.

Evocative

Having the ability to elicit a strong mental, emotional, or physical response.

Person-Environment Interaction

This term describes the dynamic and reciprocal relationship between individuals and their surroundings, where both influence and are influenced by each other.

Role Continuity Principle

A psychological principle suggesting that individuals are more likely to maintain a consistent self-concept and psychological well-being when they can maintain consistent social roles over time.