A Monopolist Has a Constant Marginal Cost of $2 Per

question 30

Multiple Choice

A monopolist has a constant marginal cost of $2 per unit and no fixed costs. He faces separate markets in the United States and England. He can set one price p₁ for the U.S. market and another price p₂ for the English market. If demand in the United States is given by Q₁ = 7,000 - 700p₁ and demand in England is given by Q₂ = 1,200 - 200p₂, then the price in the United States will

• A) equal the price in England.
• B) be smaller than the price in England by $2.
• C) be larger than the price in England by $4.
• D) be larger than the price in England by $2.
• E) be smaller than the price in England by $4.

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Definitions:

Experience Shame

An intense emotional response felt when an individual perceives themselves as having failed to meet certain standards or expectations, which can be internal or societal.

Experience Guilt

The emotional state that arises from the realization or belief that one has caused harm or violated a moral standard.

Self-Control

The ability to regulate one's emotions, thoughts, and behavior in the face of temptations and impulses.

Inhibition

The process of restraining or suppressing a response, action, or cognitive process, often discussed in psychology and neuroscience.