Refer to the Figures Above

question 16

Multiple Choice

Refer to the figures above.Suppose the graphs represent the demand for use of a local golf course for which there is no significant competition (it has a local monopoly) .P denotes the price of a round of golf and Q is the quantity of rounds sold each day.If the left graph represents the demand during weekdays and the right graph the weekend demand,this profit-maximizing golf course should:

• A) charge $9 for each round,regardless of the day of the week.
• B) charge $7 for each round,regardless of the day of the week.
• C) charge $7 for each round on weekdays,and $10 during the weekend.
• D) charge $9 for each round on weekdays,and $10 during the weekend. The monopolist should set MC = MR in both markets.That means the weekday output should be 200 per day with a price of $7 and the weekend output should be 100 per day with a price of $10.

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Definitions:

Learning Through Reinforcement

A process in behavioral psychology where the likelihood of a behavior is increased or decreased through rewards or punishments.

Imitation

The action of using someone or something as a model and copying their behaviors, actions, or characteristics.

Logic

The study of reasoning and argumentation, focusing on the principles of correct reasoning.

Meta-Analyses

A statistical analysis that combines the results of multiple scientific studies to derive a more precise estimate of the effect size or outcomes.