Use the Following to Answer Questions

question 267

Multiple Choice

Use the following to answer questions :
Scenario: A Small-Town Monopolist
A monopolist sells cable subscriptions in a small town and finds that it can sell 100 subscriptions when the price is $15 a week and 175 subscriptions when the price is $10 a week.The MC for the provision of the cable is $5 a week.There are no fixed costs.
-(Scenario: A Small-Town Monopolist) Use Scenario: A Small-Town Monopolist.If this monopolist must choose between selling 100 or 175 subscriptions,it will choose to sell _____ units at a price of _____ and earn economic profits equal to _____.

• A) 175;$10;$500
• B) 100;$15;$1 000
• C) 175;$15;$1 000
• D) 100;$10;$750

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Definitions:

State-of-the-Art Defense

The state-of-the-art defense is a legal argument used in product liability cases to claim that the product was made in accordance with the highest level of technology and knowledge available at the time of manufacture.

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused by their actions, without the need to prove negligence or fault.

Strict Product Liability

Liability under which, courts may hold the manufacturer, distributor, or retailer liable for any reasonably foreseeable injured party.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation.