A Firm Has Capacity Limitations and Charges $30 for Its

question 41

Multiple Choice

A firm has capacity limitations and charges $30 for its service during daily peak times.If the market demand elasticity drops from −3 during peak times to −5 at off-peak times,how much should the firm charge to earn the maximum profit during off-peak times?

• A) $20
• B) $21
• C) $24
• D) Not enough information to determine

---

Definitions:

Homeostasis

The tendency of a body to maintain internal stability and the physiological processes that monitor and adjust its internal conditions.

Thyroid-stimulating Hormone

A hormone produced by the pituitary gland that regulates the production of thyroid hormones, which in turn regulate metabolism, energy generation, and overall growth.

Correct Abbreviation

The appropriate shortened form or acronym of a longer phrase or name, accurately reflecting its components.

GTT

Glucose Tolerance Test, a test measuring the body's response to sugar (glucose) to diagnose diabetes or prediabetes.