For the Minnie Mice Company,the elasticity of demand is -6,and the profit-maximizing price is 30.If MC is marginal cost and AVC is average variable cost,then:

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BFor a firm maximizing its profits, the optimal pricing rule is to set price such that $MR = MC$, where $MR$ is marginal revenue and $MC$ is marginal cost. Given the price elasticity of demand ($E_d$) is -6, we can use the formula for marginal revenue in terms of price elasticity of demand, $MR = P \times \left(1 + \frac{1}{E_d}\right)$, where $P$ is the price. Substituting the given values, $MR = 30 \times \left(1 + \frac{1}{-6}\right) = 30 \times \frac{5}{6} = 25$. Since at profit maximization $MR = MC$, $MC = 25$, making choice A correct.The information provided does not directly relate to AVC (average variable cost), but since AVC does not necessarily equal MC at all levels of output, without additional information, we cannot accurately determine AVC from the given data. However, given the choices and the context, it's reasonable to infer that the question implies a relationship between MC and AVC at the profit-maximizing output, suggesting that AVC could also be 25 under certain conditions, making choice B a plausible answer in this context.

For the Minnie Mice Company,the Elasticity of Demand Is -6,and