A Firm Has Discovered a New Kind of Nonfattening, Non-Habit-Forming

question 75

Multiple Choice

A firm has discovered a new kind of nonfattening, non-habit-forming dessert called zwiffle.It doesn't taste very good, but some people like it and it can be produced from old newspapers at zero marginal cost.Before any zwiffle could be produced, the firm would have to spend a fixed cost of $F.Demand for zwiffle is given by the equation q = 20 - p.The firm has a patent on zwiffle, so it can have a monopoly in this market.

• A)The firm will not produce zwiffle if F > 20.
• B)The firm will produce zwiffle only if F is less than or equal to 100.
• C)The firm will produce 15 units of zwiffle.
• D)The firm will produce 20 units of zwiffle.
• E)None of the above.

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Definitions:

Cardiovascular Disease

A general term for conditions affecting the heart and blood vessels, often related to atherosclerosis.

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The outward display or expression of anger, which can include verbal outbursts, facial expressions, or physical actions.

Reactivity

The tendency of a substance to undergo a chemical reaction, either by itself or with other materials, or the extent to which individuals modify their behavior when they know they are being observed.

Rumination

The compulsive focused attention on the symptoms of one's distress, and on its possible causes and consequences, as opposed to its solutions.