You are the manager of Happy Avocados, the dominant firm in the ready-made guacamole market. At your current production level, your marginal cost is $0.60 and you have estimated that your price elasticity of demand is between 1.1 and 1.2. What range of prices should you charge to maximize your profit?
A) The range between $3.11 and $6.12
B) The range between $5.60 and $6.60.
C) The range between $4.60 and $5.60.
D) The range between $3.60 and $6.60.
D) The range between $3.60 and $6.60.
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