TTV's Managers Estimate That a 50% Increase in Price Would

question 45

Multiple Choice

TTV's managers estimate that a 50% increase in price would cause an 80% reduction in the quantity of product sold. Total fixed costs for the product are $5,000 and total variable costs are $4,000, based on production of 400 units. The following values may be useful: TTV's profit maximising price is

• A) $2.44
• B) $3.37
• C) $7.57
• D) $13.36

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Definitions:

Hair Cells

Cells located in the inner ear that function as mechanoreceptors for hearing.

Semicircular Canals

Three looped structures within the inner ear that are key to maintaining balance by detecting rotational movements of the head.

Rotational Equilibrium

A state where an object remains in a constant rotational motion or at rest because the sum of the torques acting on it is zero.

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks (like limestone) and is the main component of shells of marine organisms, snails, and eggs.