Use the Following to Answer Question(s): Computing Monopoly Profit

question 205

Multiple Choice

Use the following to answer question(s) : Computing Monopoly Profit

-(Exhibit: Computing Monopoly Profit) At point E, the price elasticity of demand is:

• A) equal to 1.
• B) in the elastic range.
• C) in the inelastic range, and if price falls, total revenue will increase.
• D) in the inelastic range, and if price rises, so will total revenue.

---

Definitions:

Festinger

Leon Festinger was a psychologist known for his theory of cognitive dissonance, which describes the discomfort experienced when holding conflicting thoughts.

Self-perception Theory

A theory suggesting individuals infer their own attitudes and emotions by observing their own behavior and the context in which it occurs.

Locus Of Control

A psychological concept that refers to how strongly individuals believe they have control over the situations and experiences that affect their lives.

Overjustification Effect

The phenomenon where offering external incentives for an already internally rewarding behavior can lead to a reduction in intrinsic motivation.