The Figure Shows the Demand Curve for Gap Jackets (D)

question 315

Multiple Choice

The figure shows the demand curve for Gap jackets (D) , and Gap's marginal revenue curve (MR) , marginal cost curve (MC) , and average total cost curve (ATC) .
-In the figure above, Gap maximizes its profit if it charges ________ per jacket.

• A) $130
• B) $80
• C) $115
• D) $100

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Definitions:

Goods Exports

The act of selling and shipping goods from one country to another country.

Net Investment Income

The total income received from investment assets, after deducting all related expenses.

Assets Abroad

Financial or physical holdings owned by individuals or entities in countries other than their own.

Current Account Balance

A measure of a country's trade, earnings on foreign investments minus payments to foreign investors, and cash transfers, over a period.