You are the manager of Frozen Super Paws Treats, the dominant firm in market for frozen ice cream treats for dogs. At your current production level, your marginal cost is $1.60 and you have estimated that your price elasticity of demand is between 1.2 and 1.4. What range of prices should you charge to maximize your profit?
A) The range between $4.60 and $8.60.
B) The range between $5.60 and $9.60.
C) The range between $3.20 and $6.40.
D) The range between $5.20 and $7.40.
B) The range between $5.60 and $9.60.
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