Question
obi Inc. is the dominant producer of battery-powered yard equipment. Demand for Robi's products increases with the price of gasoline is high: Q = 56
obi Inc. is the dominant producer of battery-powered yard equipment. Demand for Robi's products increases with the price of gasoline is high: Q = 56 2 P + 2 PG where Q is the quantity of Robi's products, P is the price of Robi's products, and PG is the price of gasoline. Currently, the price PG of gasoline is $2.00. 9. For this question, we no longer make any particular assumption about PG. Assume that Robi's marginal cost is MC = 7. If the profit-maximizing quantity for Robi is Q = 22, what is PG? A. PG = $1.00 B. PG = $1.50 C. PG = $2.00 D. PG = $2.50 E. None of the other choices is correct
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