Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demandcurve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. Answer the followingquestion accordingly.Price QuantityTC$25.00$100$24.00 10$250$23.00 20$420$22.00 30$600$21.00 40$780$20.00 50$970$19.00 60$1,170The profit maximizing price in the above table is:Select one:a. $21b. $24c. $22d. $25оооо

Answered: The profit maximizing price in the…

Business

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The profit maximizing price in the above table is:

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 19P: Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to...

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Question

Andrea's Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The demand
curve for the treatments is given by the first two columns in the following table; its total costs are given in the third column. Answer the following
question accordingly.
Price QuantityTC
$25.00
$100
$24.00 10
$250
$23.00 20
$420
$22.00 30
$600
$21.00 40
$780
$20.00 50
$970
$19.00 60
$1,170
The profit maximizing price in the above table is:
Select one:
a. $21
b. $24
c. $22
d. $25
оооо

Expert Solution

Step 1 - answer

Option (a).

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