In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below:

-Refer to the above information to answer this question.If the beer producers charged the same price to all consumers,in order to maximize total revenue what would that price be?
A)$5.00.
B)$4.50.
C)$4.00.
D)$3.50.
E)$3.00.

Question

In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below:
 
-Refer to the above information to answer this question.If the beer producers charged the same price to all consumers,in order to maximize total revenue what would that price be?
A)$5.00. 
B)$4.50. 
C)$4.00. 
D)$3.50. 
E)$3.00.

Quizplus · Accepted Answer

To maximize total revenue, the price should be set where the quantity demanded times the price is highest. Without specific demand information, it's impossible to calculate the exact point. However, in general economic theory, the optimal price is not at the highest or lowest end but somewhere in the middle where the product is still attractive to a large number of consumers while also generating a substantial revenue per unit sold. $4.00 is a middle-ground choice among the given options, suggesting it could be the price that balances these factors. However, without specific demand and price elasticity data, this is a theoretical assumption.

In Longolia,beer Drinking Is Associated with Blood Types