Wobble's Weebles Is the Only Producer of Weebles

question 2

Multiple Choice

Wobble's Weebles is the only producer of weebles.It makes weebles at constant marginal cost c(where c > 0) and sells them at a price of p₁ per weeble in market 1 and at a price of p₂ per weeble in market 2.The demand curve for weebles in market 1 has a constant price elasticity of demand equal to -2.The demand curve for weebles in market 2 has a constant price elasticity equal to -3/2.The ratio of the profit-maximizing price in market 1 to the profit-maximizing price in market 2 is

• A)2/3.
• B)1/3.
• C)3/2.
• D)3.
• E)dependent on the value of c.

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Definitions:

Nature

The intrinsic physical and biological factors that shape the environment and influence the survival and behavior of organisms.

Interaction

The way in which two or more entities act upon each other or communicate, often considered a fundamental concept in social sciences.

Expectancy Theory

A motivation theory suggesting that individuals are motivated to engage in behaviors based on the expected outcomes and the value they place on those outcomes.

Protestant Ethic

A concept which suggests that hard work, discipline, and frugality are a result of a person's subscription to the values espoused by the Protestant faith, commonly linked to capitalism's development.