In Marginal Analysis, the Most Profitable Price Is the Price

question 127

Multiple Choice

In marginal analysis, the most profitable price is the price at which:

• A) Profit is based on competitive pricing.
• B) Total revenue and total cost are equal.
• C) The difference between total revenue and total cost is greatest.
• D) Total profit and total cost are equal.
• E) None of these is a good answer.

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Definitions:

Service Charge

A fee collected for the provision of a service, often added to the cost of transactions in financial services.

Car Insurance

Car insurance is a contract between a vehicle owner and an insurance company, offering financial protection against loss or damage to the vehicle and liability against accidents involving the vehicle.

Partnership Agreement

A formal contract between two or more parties agreeing to manage and operate a business together, sharing its profits and losses.

Contributing

Refers to the act of providing resources or help towards a common goal or fund.