The Figure Shows the Demand Curve for Gap Jackets (D)

question 315

Multiple Choice

The figure shows the demand curve for Gap jackets (D) , and Gap's marginal revenue curve (MR) , marginal cost curve (MC) , and average total cost curve (ATC) .
-In the figure above, Gap maximizes its profit if it charges ________ per jacket.

• A) $130
• B) $80
• C) $115
• D) $100

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Definitions:

Ranking Items

A method used to sort or prioritize items, tasks, or options based on specific criteria.

Criterion

A standard or principle by which something is judged or decided.

Heuristics

Mental shortcuts or rules of thumb that simplify decision making.

Rules Of Thumb

Rules of thumb are general principles derived from practice or experience, serving as informal guidelines rather than strict regulations or measures.