Identify the Optimal Point as Either a Maximum Point or a Minimum

question 5

Multiple Choice

Identify the optimal point as either a maximum point or a minimum point.

• A) (0, 16, 16) constrained minimum (5)333, 10.667, 606.815) constrained maximum
• B) (0, 16, 0) constrained minimum (606.815, 5.333, 10.667) constrained maximum
• C) (16, 16, 0) constrained minimum (10)667, 606.815, 5.333) constrained maximum
• D) (0, 16, 0) constrained minimum (10)667, 5.333, 606.815) constrained maximum
• E) (0, 10, 0) constrained minimum (10)667, 606.815, 5.333) constrained maximum

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Definitions:

Perfectly Price Discriminates

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the buyer is willing to pay, capturing the entire surplus.

Consumer Surplus

The variance between the aggregate amount consumers intend and have the means to pay for a good or service and the sum they actually pay.

Consumer Surplus

The gap between what consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Perfect Price Discriminator

A theoretical entity that charges each consumer the maximum price they would be willing to pay for a good or service.