Use the Following to Answer Questions

question 36

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.Compared with charging a single price,the deadweight loss:

• A) increases when this monopolist price-discriminates.
• B) decreases when this monopolist price-discriminates.
• C) stays the same when this monopolist price-discriminates.
• D) is equal to zero.

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Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without new learning sessions.

Generalization

Drawing broad conclusions from specific instances; in psychology, it refers to the process of applying findings from a study to larger population segments.

Flooding

A psychological technique used in therapy to help individuals face their fears by exposing them to high levels of emotional stimuli.

Systematic Desensitization

A therapeutic method used to reduce phobia or anxiety through gradual exposure to the feared object or situation combined with relaxation techniques.