Answer the Question on the Basis of the Following Demand $\quad$

question 104

Multiple Choice

Answer the question on the basis of the following demand and cost data for a specific firm. $\quad$$\quad$$\quad$$\quad$$\text { Demand Data }$ $\quad$$\quad$$\quad$ $\text { Cost Data }$
$\begin{array}{|c|c|c|c|c|}\hline(1) &(2) &(3) &&\text { Total } \\\text { Price }&\text { Price }&\text { Quanti }&\text { Outpu }&\text { Cost } \\&&\text { ty }& \text { t }\\\hline 11.0 & \$ 10.0 & 6 & 6 & \$ 61 \\\hline 9.99 & 8.85 & 7 & 7 & 62 \\\hline 9.00 & 8.00 & 8 & 8 & 64 \\\hline 8.00 & 7.00 & 9 & 9 & 67 \\\hline 7.10 & 6.10 & 10 & 10 & 72 \\\hline 6.00 & 5.00 & 11 & 11 & 79 \\\hline 5.15 & 4.15 & 12 & 12 & 86 \\\hline\end{array}$ Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) to columns (2) and (3) . Economic profit will

• A) fall by $10.
• B) fall to $6.
• C) increase by $10.
• D) decline to zero.

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Definitions:

Individualist Cultures

Societies that emphasize personal achievement, autonomy, and individual rights over collective goals and social responsibilities.

Collectivist Cultures

Societies that prioritize the goals, needs, and views of the group over those of the individual, emphasizing strong familial and community ties.

Conformity

Refers to the act of aligning one's attitudes, beliefs, or behaviors to group norms or standards.

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.