Based on the Following Diagram If There Were a $3

question 1

Multiple Choice

Based on the following diagram if there were a $3.00 price floor:

• A) the quantity demanded would be 65.
• B) the quantity demanded would be 30.
• C) there would be a shortage of 30.
• D) there would be a surplus of 30.

Examine the role and effects of economies of scale in establishing monopolies.

Evaluate the benefits and drawbacks of large retailers like Wal-Mart on consumers and competitors.

Calculate marginal revenue and understand its importance in profit maximization for monopolies.

Understand the concept of economic efficiency and how monopolies compare to perfect competitors in this aspect.

---

Definitions:

Erik Erikson's Theory

A theory of psychological development that outlines eight stages from infancy to adulthood, each characterized by a specific crisis.

Sense of Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, etc., whether real or imagined.

Fantasies

Imaginative thoughts, scenarios, or desires that are not based in reality, often serving as a mental escape or creative outlet.

Menopause

The cessation of menstruation and of the production of ova; it is usually a gradual process lasting up to several years.