Figure: The Restaurant Market
(Figure: The Restaurant Market) The figure The Restaurant Market shows curves facing a typical restaurant in a community.Assume that many firms, differentiated products, and easy entry and easy exit characterize the restaurant market.For the restaurant shown here, the profit-maximizing price is:
A) P₁.
B) P₂.
C) P₃.
D) Not enough information is given to answer the question.
Correct Answer:
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