Assume Pyrotex Inc

question 14

Multiple Choice

Assume Pyrotex Inc. estimates the demand for its fireworks to be linear. If the current price charged by Pyrotex is such that the elasticity of demand is equal to 2.5, which of the following statements is true?

• A) Pyrotex will surely increase its profits by decreasing the price of fireworks.
• B) Pyrotex will surely increase its profits by increasing the price of fireworks.
• C) Pyrotex cannot increase its profits by changing the price of fireworks.
• D) Not enough information is provided to determine whether Pyrotex is currently maximizing its profits.

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Definitions:

mRNA

Messenger RNA, a type of RNA molecule that carries genetic information from DNA to the ribosome, where proteins are synthesized.

Coding Region

A portion of DNA or RNA that codes for the amino acid sequence of a protein and is instrumental in protein synthesis.

AUG

The RNA codon that signals the start of a protein-coding sequence and encodes for the amino acid methionine.