Dollar Deals Sells a Single Product That Has a Unit

question 60

Multiple Choice

Dollar Deals sells a single product that has a unit variable cost of $9 per unit. The company's total fixed costs are $220,000. The company estimates demand at various activity levels as follows: $$\begin{array} { c c } \text { Units Demanded } & \text { Unit Price } \\54,000 & \$ 15 \\65,000 & \$ 14 \\72,000 & \$ 13 \\82,000 & \$ 12\end{array}$$ What price should Dollar Deals charge to maximize profits?

• A) $15
• B) $14
• C) $13
• D) $12

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Definitions:

Labor Market Discrimination

The unfair treatment of workers based on race, gender, age, or other non-job-related characteristics, affecting hiring, wages, and promotion.

Nation's GDP

The total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Specialization

A production strategy where a business or country focuses on producing a limited range of goods or services to gain greater degrees of productive efficiency within an overall system.

Collective Discrimination

Discriminatory practices or attitudes shared and enacted by a group towards others, often based on race, gender, or ethnicity.