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

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Definitions:

Behaviour Modelling

A training method that involves showing employees how to perform a task or behavior by demonstrating it and then allowing them to replicate the behavior.

Managers

Individuals within an organization responsible for directing and overseeing the work of others to achieve specific objectives.

Discipline

The practice of training people to obey rules or a code of behavior, often using punishment to correct disobedience.

Role-playing

An educational or training method in which participants simulate characters or scenarios to explore behaviors, skills, or concepts in a controlled environment.