Use the Figure Below to Answer the Following Questions

question 103

Multiple Choice

Use the figure below to answer the following questions.

Figure 14.2.6
-Refer to Figure 14.2.6, which shows the demand curve, marginal revenue curve and cost curves faced by Gap. Gap maximizes its profit if it charges ________ per jacket.

• A)$100
• B)$95
• C)$75
• D)$120
• E)$90

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Definitions:

Industry Classified

The categorization of companies into sectors and industries based on their primary business activities.

Common Shareholders' Equity

The portion of a company's equity that is attributable to common shares, representing the residual interest in the net assets of the company.

Return on Assets

A profitability ratio that measures how efficiently a company uses its assets to generate profit, calculated by dividing net income by total assets.

Debt to Total Assets

A financial ratio that shows the proportion of a company's assets that are financed through debt.