Use the Following to Answer Questions

question 71

Multiple Choice

Use the following to answer questions:
-(Table: Prices and Demand) Look at the table Prices and Demand. The New Orleans Saints have a monopoly on Saints logo hats. The marginal cost of producing a hat is $18. How many hats should the Saints produce, and what price should the organization charge to maximize its profits?

• A) 1; $28
• B) 2; $26
• C) 3; $24
• D) 4; $22

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Definitions:

Adjudged

Adjudged means to make a formal decision or judgment about something, often used in a legal context.

Prohibited By Law

Activities, actions or substances that are explicitly forbidden by legal statutes.

Disaffirm The Contract

The legal act of a party declaring a contract void and relinquishing all rights and obligations under that contract.

Intoxicated

The condition of being under the influence of alcohol or drugs to the extent that mental and motor skills are impaired.