Ann and Bruce Each Own a Pizza Store in Frostbite

question 23

Multiple Choice

Ann and Bruce each own a pizza store in Frostbite Falls, Minnesota.Demand for pizza is given by Q = 200 - 10P.Having the only two pizza stores in Frostbite Falls, they attempt to profitably split the market without violating the Sherman Antitrust Act.Each has the cost function C = 50 + 5Q.If Ann and Bruce behave as duopolists, each earns a profit of

• A)$0.
• B)$200.
• C)$500
• D)$500.
• E)$562.50.

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Definitions:

Situational Attribution

The process of inferring that a person's behavior is due to situational factors.

Dispositional Attribution

The tendency to attribute someone's behavior to their personality or character rather than to external factors.

Stanley Milgram's Obedience Research

A series of social psychology experiments conducted in the 1960s which measured the willingness of study participants to obey an authority figure who instructed them to perform acts conflicting with their personal conscience.

Ethical Dilemmas

Situations in which a choice must be made between two options, neither of which resolves the situation in an ethically acceptable manner.