Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades is producing the profit-maximizing number of sunglasses (in hundreds) and charging the profit-maximizing wholesale price, what is Slick Shades' profit (in hundreds)?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) $3,600
B) $2,400
C) $6,400
D) $4,800
A) $3,600
You might also like to view...
Which best expresses the law of diminishing marginal utility?
A. The more a product is consumed, the greater the total utility received from the product. B. The less a product is consumed, the smaller the marginal utility received from the product. C. The more a product is consumed, the smaller the total utility received from the product. D. The more a product is consumed, the smaller the marginal utility received from the product.
_________ collusion can occur even when oligopolistic businesses do not directly communicate with each other.
A. Explicit B. Marginal C. Ordinary D. Implicit
The logic of why international trade increases well-being is
A. a major revision of the logic of why trade within a country increases well-being. B. completely different from the logic of why trade within a country increases well-being. C. a narrow, special case of the logic of why trade within a country increases well-being. D. no different from the logic of why trade within a country increases well-being.
The long-run labor demand curve is:
A. more elastic than the short-run labor demand curve. B. less elastic than the short-run labor demand curve. C. either more or less elastic than the short-run labor demand curve. D. perfectly elastic (horizontal).