The correct answer is C.
A monopoly is a market structure where a single firm serves the whole demand of a specific good or service. It does not face competitors, therefore, such firm has absolute market power to decide the price charged for its products.
So, the monopoly is able to charge a higher price than in a perfect competition scenario where the price would be set at the intersection betweeen the demand function and the marginal cost function.
Instead, the quantity sold in the monopoly (<u>q*) is determined by the intersection of the marginal revenue and marginal cost curves, and the monopoly price is computed by substituting q* in the expression of the demand function </u>(because the demand function relates price and quantity).
<u>The result is 15$ as the picture shows. </u>
This questions includes two types of surveys. The first one is a consumer habits survey, while the second one is the one designed for the movie director.
1.
In the first case, we learn that sales have been decreasing rapidly in the last four years. Over this same period of time, the town has grown in size and become a commuter town with a lot of new states for families to move into. The survey that is designed needs to measure several thing. First, it needs to provide information on the size and share of the market. It also needs to perform market profiling (who are the consumers? what are they like?). Finally, it needs to track what the habits and uses of the consumers are like, so that the products can best address these needs.
2.
The purpose of this questionnaire would be learning more about the audience's reactions and feelings towards the movie. Moreover, the purpose of this would be to inform the director of any necessary changes. The questionnaire should be completed immediately after the viewing. It should also be short and contain only a few questions, with the option to elaborate if necessary. Some of the questions you could use would be:
- <em>While watching the movie, did you feel distracted at any point? When?</em>
- <em>Did you feel the movie lasted longer than necessary?</em>
- <em>Were there any scenes that felt pointless, long or irrelevant?</em>
- <em>If you had to eliminate 10 minutes of the movies, which ones would you eliminate?</em>
- <em>How likely are you to recommend the movie to your friends?</em>
- <em>How likely are you to watch the movie again?</em>
A or D seem to be the most reasonable answers
