Use the Figure Below to Answer the Following Question

question 26

Multiple Choice

Use the figure below to answer the following question.

Figure 13.2.4
-Refer to Figure 13.2.4. Grannie's is the only cake bakery on Coastal Island. The graph shows Grannie's demand curve, marginal revenue curve, and marginal cost curve. Grannie's profit-maximizing price is ________ a cake and its profit-maximizing output is ________ cakes a week.

• A)$28; 12
• B)$16; 12
• C)$36; 2
• D)$16; 24
• E)$24; 16

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Definitions:

Lower-Level Needs

Basic physiological and safety needs in Maslow's hierarchy that must be satisfied before higher-level psychological needs.

Motivation

The method that starts, directs, and sustains actions aimed at achieving goals.

Needs-Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in that order.

21st Century

The period extending from January 1, 2001, to December 31, 2100, characterized by rapid advancements in technology, globalization, and changing social norms.