Suppose That the Demand Curve for Mineral Water Is Given

question 15

Multiple Choice

Suppose that the demand curve for mineral water is given by p = 40 - 12q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers. Mineral water is supplied to consumers by a monopolistic distributor who buys from a monopolistic producer, who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle. Given his marginal cost of c per unit, the distributor chooses an output to maximize his own profits. Knowing that this is what the distributor will do, the producer sets his price c so as to maximize his revenue. The price paid by consumers under this arrangement is

• A) $30.
• B) $3.33.
• C) $20.
• D) $10.
• E) $1.67.

Analyze financial statements and ratios to assess business performance against industry standards.

Recognize the importance of managing receivables and inventory for effective cash flow management.

Understand the concept and components of the cash-to-cash cycle in business operations.

Recognize the role of financial analysis, including ratio analysis, in business decision-making.

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Definitions:

Basal Ganglia

A group of structures linked to the thalamus in the base of the brain and involved in coordination of movement and behavior control.

Procedural Memories

Procedural memories are a type of long-term memory involved in the learning of motor skills and behaviors, allowing individuals to perform tasks without conscious awareness of the learned abilities.

Reticular Formation

A network of neurons in the brainstem involved in arousal and alertness.

Procedural Memories

Memories of how to perform tasks or actions, such as riding a bike or tying shoelaces, often recalled unconsciously.