QUESTION 20 Price 30 45 Quantity According to Figure 5 a. when the price of Tequ

Question

QUESTION 20 Price 30 45 Quantity According to Figure 5 a. when the price of Tequila is $8 if the firm produces 30 bottles then profits will not be maximized b. when the price of Tequila is $8 the firm will produce 45 bottles to maximize profits c. when the price of Tequila is $5 the firm will produce 45 bottles to maximize profits d. when the price of Tequila is between $5 and $8 the firm cannot maximize profits QUESTION 21 If the government taxes only one good and gives back to people the tax revenue then

Explanation / Answer

"B"

As the curve is downward sloping the firm will produce 45 units to maximize the profit when the price is $8.

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