8. Natural monopoly analysis The following graph gives the demand (D) curve for SG LTE services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local SG LTE company, a natural monopolist On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist

QUESTION 38 What are the two routes that we use to process information, according to the Elaboration Likelihood Model (ELM)? O central & minor O central & peripheral O fundamental & peripheral O dominant & central QUESTION 39 Which statement best explains the Extended Parallel Processing Model's take-home message? O Fear appeals are most effective when they get the attention of their audience but are not so intense as to induce too high levels of fear. The more intense a fear appeal, the less successful it will be at enacting behavior change. Fear appeals are more successful if they are more intense. O Fear appeals simply do not work in changing behaviors.

Topic B Problem: Imagine you have two competing athletes who have the option to use an illegal and/or dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gains an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping. However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping. What class concept best describes this situation? Using this class concept, what outcome do we expect from these two athletes? Are there any factors that could change the outcome predicted by this course concept?

Burger King has introduced new strategy by reducing the price of its Whopper by 75 percent if customers also purchased french fries and a soft drink. Nevertheless, the sales dropped within two weeks. Based on your knowledge on game theory, what do you think had happened? The Edge magazine columnist, Jack Sparrow reported the recent findings of two academic political scientists. These scholars found out that voters are not happy with “negative campaigns” of politicians. However, the political scientists suggested it is pointless for candidates to stay positive. The damage from staying positive is heaviest when the opponent is attacking. Explain the dilemma.        Airlines practice price discrimination by charging leisure travelers and business travelers different prices. Why do you think by charging different prices; the airline companies will maximize their profits? Discuss briefly.