Refer to the table below. What is the profit-maximizing price for Gorgeous Sands Resort to charge during the peak period?



The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units.



A) $7,000

B) $7,800

C) $8,000

D) $10,000


A) $7,000

Economics

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Suppose there is only one producer of frames, a necessary component in manufacturing computer monitors. Because of the threat of entry, this firm charges its customers a price equal to average cost. One reason that a producer of computer monitors may make rather than buy frames is

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In Graph A, if the price of computers changes from Point B to Point A, what type of change will happen in Graph B?



a. a shift down
b. a shift up
c. a shift to the right
d. a shift to the left

Economics