-Use the figure above to answer this question. Mary is the only veterinarian in a small town. To maximise her profit, Mary will choose to treat ________ animals per hour and charge ________ per customer in order to ________.
A) 6; $20; minimise cost in order to attract more customers
B) 4; $50; operate on the inelastic portion of her demand curve
C) 6; $20; maximise profit
D) 6; $30; minimise average total cost
E) 4; $50; maximise profit

Question

-Use the figure above to answer this question. Mary is the only veterinarian in a small town. To maximise her profit, Mary will choose to treat ________ animals per hour and charge ________ per customer in order to ________.
A) 6; $20; minimise cost in order to attract more customers 
B) 4; $50; operate on the inelastic portion of her demand curve 
C) 6; $20; maximise profit 
D) 6; $30; minimise average total cost 
E) 4; $50; maximise profit

Quizplus · Accepted Answer

Maximising profit often involves operating at a quantity and price point where marginal revenue equals marginal cost, which can coincide with the inelastic portion of the demand curve where customers are less sensitive to price changes.

-Use the Figure Above to Answer This Question