Refer to the information provided in Figure 13.7 below to answer the question that follows. Figure 13.7
-Refer to Figure 13.7. The profit-maximizing price for the Memory Company's high school yearbook is
A) $0.
B) $9.
C) $16.
D) $20.

Question

Refer to the information provided in Figure 13.7 below to answer the question that follows.  Figure 13.7
-Refer to Figure 13.7. The profit-maximizing price for the Memory Company's high school yearbook is
A) $0. 
B) $9. 
C) $16. 
D) $20.

Quizplus · Accepted Answer

The profit-maximizing price is where marginal revenue (MR) equals marginal cost (MC). In the graph, MR is the same as the demand curve, which intersects with the MC curve at a quantity of 800. The corresponding price on the demand curve is $16. This is the highest price that the company can charge and still sell 800 yearbooks, maximizing their profit.

Refer to the Information Provided in Figure 13