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Figure 9-5 -Refer to Figure 9-5.The Chocolate Store Represented in the Diagram

Question 75

Multiple Choice

Figure 9-5 Figure 9-5   -Refer to Figure 9-5.The chocolate store represented in the diagram is currently selling Qa units of chocolate at a price of Pa.Is this chocolate store maximising its profit and,if it is not,what would you recommend to the firm? A)  Yes, it is maximising its profit by charging the highest price possible. B)  No, it is not; since its marginal cost is constant, it should produce and sell as much chocolate as it can. It should sell Qd units at a price of Pd. C)  No, it is not; it should lower its price to Pc and sell Qc units. D)  No, it is not; it should lower its price to Pb and sell Qb units.
-Refer to Figure 9-5.The chocolate store represented in the diagram is currently selling Qa units of chocolate at a price of Pa.Is this chocolate store maximising its profit and,if it is not,what would you recommend to the firm?


A) Yes, it is maximising its profit by charging the highest price possible.
B) No, it is not; since its marginal cost is constant, it should produce and sell as much chocolate as it can. It should sell Qd units at a price of Pd.
C) No, it is not; it should lower its price to Pc and sell Qc units.
D) No, it is not; it should lower its price to Pb and sell Qb units.

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