Suppose Table Shows the Average Price of Bananas, in Cents

question 1

Multiple Choice

Suppose table shows the average price of bananas, in cents per pound, for selected months and years. Locate all relative maximum points, minimum points, and saddle points.

• A) none of these
• B) relative maximum point(s): (July 1998); (June 1999); (August 1999) Relative minimum points(s): (July 1994); (September 1994); (May 1997) Saddle point(s): (June 1997); (August 1997)
• C) relative maximum point(s): (August, 1995); (June 1996) Relative minimum points(s): (July 1997); (May 1999); (July 1999); (September 1999) Saddle point(s): (May 1998); (September 1998)
• D) relative maximum point(s): (June 1996) Relative minimum points(s): (July 1997) Saddle point(s): (June 1997); (August 1997)
• E) relative maximum point(s): (August, 1995); (June 1996); (July 1998) Relative minimum points(s): (July 1997) Saddle point(s): (June 1997); (August 1997)

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Definitions:

Efficient Output

The level of production at which a firm or economy can produce goods at the lowest average cost, maximizing resource use without waste.

Market Price

The current price at which an asset or service can be bought or sold in a particular market.

Price Discrimination

A pricing strategy where the same product or service is sold at different prices to different customers, based on factors like demand, market conditions, or purchasing power.

Segments

Different parts or sections of a market, divided based on characteristics like demographics, needs, or preferences.