Suppose That in Problem 2, the Demand Curve for Mineral

question 19

Multiple Choice

Suppose that in Problem 2, the demand curve for mineral water is given by p = 60 - 8q, 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) $30.
• B) $45.
• C) $3.75.
• D) $7.50.
• E) $15.

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Definitions:

Thomas Szasz

A Hungarian-American psychiatrist known for his criticisms of psychiatry and the moral and scientific foundations of the concept of mental illness.

Moral Judgement

The process of determining the rightness or wrongness of actions based on ethical principles or social norms.

Abnormal Behaviour

Actions, thoughts, or emotions that deviate significantly from cultural or societal norms and may impair an individual’s functioning.

Medical Model

A framework for understanding diseases and disorders by focusing on biological factors and excluding psychological or social factors.