Multiple Choice
A firm has capacity limitations and charges $30 for its service during daily peak times.If the market demand elasticity drops from −3 during peak times to −5 at off-peak times,how much should the firm charge to earn the maximum profit during off-peak times?
A) $20
B) $21
C) $24
D) Not enough information to determine
Correct Answer:
Verified
Correct Answer:
Verified
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