A Firm Has Invented a New Beverage Called Slops

question 9

Multiple Choice

A firm has invented a new beverage called Slops.It doesn't taste very good, but it gives people a craving for Lawrence Welk's music and Professor Johnson's jokes.Some people are willing to pay money for this effect, so the demand for Slops is given by the equation q = 18 - p.Slops can be made at zero marginal cost from old-fashioned macroeconomics books dissolved in bathwater.But before any Slops can be produced, the firm must undertake a fixed cost of $86.Since the inventor has a patent on Slops, it can be a monopolist in this new industry.

• A)The firm will produce 9 units of Slops.
• B)From the point of view of social efficiency, it is best that no Slops be produced.
• C)A Pareto improvement could be achieved by having the government pay the firm a subsidy of $91 and insisting that the firm offer Slops at zero price.
• D)The firm will produce 18 units of Slops.
• E)None of the above.

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Definitions:

Masculine Side

The collection of attributes, behaviors, and roles generally associated with boys and men, as determined by societal norms.

Defense Mechanism

Psychological strategies unconsciously used to protect oneself from anxiety by denying and distorting reality.

Reaction Formation

Psychological defense mechanism in which a person forms an opposite emotional or behavioral reaction to the way he or she really feels to keep those true feelings hidden from self and others.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.