Refer to the accompanying figure to answer the following questions.

-If a firm is producing a quantity of 150 and charging a price of $13,it
A) should continue to produce 150 units but lower the price to $10 to maximize profits.
B) should continue to produce 150 units but raise the price to $25 to maximize profits.
C) should lower production to 100 units but keep charging $13 to maximize profits.
D) should lower production to 100 units and raise the price to $25 to maximize profits.
E) is already maximizing profits and should not change the price or quantity produced.

Question

Refer to the accompanying figure to answer the following questions.
 
-If a firm is producing a quantity of 150 and charging a price of $13,it
A) should continue to produce 150 units but lower the price to $10 to maximize profits. 
B) should continue to produce 150 units but raise the price to $25 to maximize profits. 
C) should lower production to 100 units but keep charging $13 to maximize profits. 
D) should lower production to 100 units and raise the price to $25 to maximize profits. 
E) is already maximizing profits and should not change the price or quantity produced.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying figure to answer the following questions.
 
-If a firm is producing a quantity of 150 and charging a price of $13,it
A) should continue to produce 150 units but lower the price to $10 to maximize profits. 
B) should continue to produce 150 units but raise the price to $25 to maximize profits. 
C) should lower production to 100 units but keep charging $13 to maximize profits. 
D) should lower production to 100 units and raise the price to $25 to maximize profits. 
E) is already maximizing profits and should not change the price or quantity produced.

Refer to the Accompanying Figure to Answer the Following Questions