Use the Following to Answer Questions

question 188

Multiple Choice

Use the following to answer questions :
Scenario: Monopolistically Competitive Firm
For a monopolistically competitive firm,the demand curve is given by Q = 160 - P,and the firm's cost functions are MC = 20 + 2Q and TC = 20Q + Q² + 20.
-(Scenario: Monopolistically Competitive Firm) Use Scenario: Monopolistically Competitive Firm.Given the information in the scenario,what is the profit-maximizing price for this firm in the short run?

• A) $160
• B) $125
• C) $40
• D) $180

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Definitions:

Motivational Arousal

The level of psychological activation or energy that prompts an organism to engage in behavior directed towards achieving a specific goal.

Physiological State

The condition of the body's internal biological functions and processes at a specific time.

Drive-reduction Theory

A motivational theory that posits that psychological needs create an aroused tension state (a drive) that motivates an organism to satisfy the need, thereby reducing the tension.

Nutritionally Poor

Describes food that lacks in essential nutrients needed for maintaining healthy bodily functions.