Multiple Choice
If the marginal cost of producing vanity license plates is virtually zero (by prison inmates with little else to do) , then states would maximize their profits on plate sales at the point on a linear demand curve where
A) demand is inelastic.
B) demand is elastic.
C) demand is unit elastic.
D) the demand curve crosses the horizontal axis.
Correct Answer:

Verified
Correct Answer:
Verified
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