Kevin owns a personal training gymnasium in Orlando. The above figure shows the demand and cost curves for his firm, which competes in a monopolistically competitive market. What price will Kevin charge per session?
A) $100
B) $60
C) $40
D) $20
E) $80
B
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There is an inverse relationship between the interest rate and the quantity of money demanded
a. True b. False Indicate whether the statement is true or false
Suppose a country increases government purchases by $700 billion. Suppose the government spending multiplier is 2 and the economy's real GDP is $6,000 billion. This policy action shifts the aggregate demand curve to the right by
A) $12,000 billion. B) $3,000 billion. C) $1,400 billion. D) $350 billion.
Firms that produce 90 percent of all smart TVs have shut down their facilities for maintenance. In the smart TV market this will lead to
A. an increase in price and a decrease in quantity. B. an increase in price and an increase in quantity. C. a decrease in price and a decrease in quantity. D. a decrease in price and an increase in quantity.
If the price elasticity of supply of television sets is constant and equal to 3, a 10 percent increase in price will result in a change in quantity supplied equal to
A) 3 1/3 percent. B) 30 percent. C) 1/3 percent. D) -30 percent.