Use the Following to Answer Question

question 49

Multiple Choice

Use the following to answer question:
Figure: Monopolistic Competition III
-(Figure: Monopolistic Competition III) Use Figure: Monopolistic Competition III.The figure shows the demand,marginal revenue,marginal cost,and average total cost curves for Pat's Pizza Parlor,a monopolistic competitor in the food-to-go industry.Pat's Pizza Parlor's profit at the profit-maximizing quantity will be:

• A)$0.
• B)$350.
• C)$700.
• D)$900.

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Definitions:

Net Income

The company's earnings post all deductions for expenses and taxes from its income.

Net Sales

The total revenue from sales after subtracting returns, allowances for damaged or missing goods, and discounts.

Return On Common Stockholders' Equity

A financial ratio that measures the amount of net income returned as a percentage of shareholders' equity, indicating the profitability of a company from the common shareholders' perspective.

Net Income

The remaining earnings of a corporation after deducting all costs, taxes, and expenses from its gross revenue.