Use the above figure. The profit-maximizing price will be
A) P1.
B) P2.
C) P3.
D) P4.
C
You might also like to view...
Apple and Samsung agree to stop undercutting each other's phone prices. Which of the following antitrust acts are being violated?
A. Clayton Act B. Sherman Act C. Federal Trade Commission Act D. No Antitrust law is being violated
Which of the following is (are) responsible for managing the money supply in the United States?
A) the Board of Governors B) the Federal Reserve Bank of New York C) the Federal Open Market Committee D) the twelve Federal Reserve Banks
Lower interest rates
A. Reflect a lower opportunity cost of money. B. Reflect a higher opportunity cost of money. C. Raise the future value of current dollars. D. Lower the present value of future payments.
If the price of a good decreases by 5% and the quantity demanded increases by 5%, then at that price, the good is
A. unit elastic. B. perfectly inelastic. C. elastic. D. inelastic.