Suppose the Demand Curve for Mineral Water Is Given by P

question 6

Multiple Choice

Suppose the demand curve for mineral water is given by p = 40 - 16q, where p is the price per bottle paid by consumers and q is the number of bottles purchased by consumers.Mineral water is supplied to consumers by a monopolistic distributor, who buys from a monopolist producer who is able to produce mineral water at zero cost.The producer charges the distributor a price of c per bottle, that will maximize the producer's total revenue.Given his marginal cost of c, the istributor chooses an output to maximize profits.The price paid by consumers under this arrangement is

• A)$2.50.
• B)$20.
• C)$1.25.
• D)$30.
• E)$10.

---

Definitions:

Generating Knowledge

The process of creating new understanding, insights, or information through research, experimentation, or innovation.

HRM Effectiveness

The degree to which the human resource management strategies, policies, and practices of an organization contribute to achieving the organization's goals.

HR Analytics

Type of assessment of HRM effectiveness that involves determining the impact of, or the financial cost and benefits of, a program or practice.

High-Performance Work System

An organization in which technology, organizational structure, people, and processes work together seamlessly to give an organization an advantage in the competitive environment.