Suppose That in Problem 2, the Demand Curve for Mineral

question 17

Multiple Choice

Suppose that in Problem 2, the demand curve for mineral water is given by p = 70 - 16q, 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 monopolist producer who is able to produce mineral water at zero cost. The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue. Given his marginal cost of c, the distributor chooses an output to maximize profits. The price paid by consumers under this arrangement is

• A) $52.50.
• B) $35.
• C) $4.38.
• D) $2.19.
• E) $17.50.

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Definitions:

Self-efficacy Theory

A psychological concept suggesting that an individual's belief in their ability to perform tasks leads to better performance and outcomes.

Social Learning Theory

A theory that posits individuals learn new behaviors and attitudes through observation of others and interactions within their social context.

Alderfer's ERG Theory

A human needs theory in organizational behavior that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Diminishing Marginal

refers to the principle in economics where each additional unit of input results in a smaller increase in output, commonly applied in the context of production and utility.