Palm Decor Sells a Single Product That Has Variable Costs

question 99

Multiple Choice

Palm Decor sells a single product that has variable costs of $12 per unit. The company estimates the following demand at various unit prices:
$$\begin{array} { | c | c | } \hline \text { Units Demanded } & \text { Unit Price } \\\hline 31,000 & \$ 19 \\37,000 & 18 \\44,000 & 17 \\56,000 & 16 \\60,000 & 15\\\hline\end{array}$$
What price should Palm Decor charge to maximize profits?

• A) $19
• B) $18
• C) $17
• D) $16

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Definitions:

Joint Tenancy

A form of co-ownership where property is owned by two or more parties with equal rights to the whole property, and with the right of survivorship.

Tenancy In Common

A type of co-ownership in which each owner has the right to sell his or her interest without the consent of the other owners, may own an unequal share of the property, and may have a creditor attach his or her interest.

Property Interests

involve legal rights over the use, possession, and control of property, including both real and personal property.

State Official

An individual holding an office or position of authority in a government at the state level, responsible for executing the laws and policies of the state.