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4. For the Minnie Mice Company, the elasticity of demand is -6, and the profit-maximizing price is 30. If MC is marginal cost and AVC is average variable cost, then: a. MC = 25. b. AVC = 25. C. MC = 30. d. AVC = 36. e. MC = 36. ANS: A 5. Bathworks has exclusive rights to sell its perfumes. The demand for its perfumes faced by Bathworks is given by Q=250 -0.5P. Bathworks's costs are given by TC = 500 + 5.50'. Its maximum monopoly profit is: a. $6,750. b. $7,050. C. $7,500