Refer to the above figure. The profit-maximizing price for this firm is
A. P1.
B. P2.
C. P3.
D. P4.
Answer: A
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According to the economic way of thinking, "money" is defined as
A) anything backed by gold. B) anything backed by some other commodity. C) anything used as a general medium of exchange. D) anything the government declares to be legal tender.
If Happy Cleaners and Sparkle Cleaners are in a Cournot oligopoly and Happy Cleaners has a lower cost of production than Sparkle Cleaners, in equilibrium, Happy Cleaners will produce ________ than Sparkle Cleaners and charge a price that is ________ Sparkle Cleaners.
A) more; the same as B) less; greater than C) less; the same as D) more; less than
The automobile industry is
a. in monopolistic competition because brand names are important b. in monopolistic competition because it has economies of scale c. in monopolistic competition for legal reasons d. an oligopoly because each firm must produce a large amount of output before it can achieve low average costs e. an oligopoly for legal reasons
Round-trip airline tickets are usually cheaper if you stay over a Saturday night before you fly back. What is the reason for this price discrepancy?
a. Airlines are practicing imperfect price discrimination to raise their profits. b. Airlines charge a different rate based on the different nature of peoples' travel needs. c. Airlines are attempting to charge people based on their willingness to pay. d. All of the above are correct.