Use the Following to Answer Question(s): the Restaurant Model

Multiple Choice

Use the following to answer question(s) : The Restaurant Model

-(Exhibit: The Restaurant Market) The exhibit shows curves facing a typical restaurant in a community.Assume that the market is characterized by many firms, differentiated products, easy entry and easy exit.For the restaurant shown here the profit-maximizing price is:

A) P₁.
B) P₂.
C) P₃.
D) There is not enough information given to answer the question.