Question
Bluth's Frozen Banana stand is the not just the best on Balboa Island - it's the only banana stand on Balboa, so it has some
Bluth's Frozen Banana stand is the not just the best on Balboa Island - it's the only banana stand on Balboa, so it has some level of market power. The marginal cost of making another chocolate-dipped banana is very low, and doesn't change substantially the more bananas they produce. Banana stand employee George Michael suspects if they decreased their prices by 15%, they would sell so many more bananas that their profits would rise. If George Michael is right, what must be true about the banana stand's current output?
Group of answer choices
A: MR > MC
B: MR = MC
C: MR < MC
D: It's unclear from the information given
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