Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class. CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18What price will Campus Books charge if it must charge a single price to all of its customers?
A. $10
B. $24
C. $18
D. $36
Answer: D
You might also like to view...
Will an increase in the minimum wage create more unemployment if the supply and demand for labor are highly elastic or highly inelastic?
What will be an ideal response?
By human capital, economists mean
A) machines that replace humans. B) machines engineered to avoid operator injury. C) the accumulated skill and knowledge of humans. D) humans who perform repetitive tasks.
If the credits for a principles of economics section is three units and an instructor teaches two sections with 100 students in each and tuition and fees at your school are $100 per unit, then the marginal revenue product for your school from hiring that instructor that semester is:
A. $100. B. $300. C. $30,000. D. $60,000.
Suppose that American firms claim that protectionism in Canada is on the rise as the Canadian government attempts to protect its infant industries with a "Buy Canadian" provision. This policy, similar to the original "Buy American" provision in the 2009
U.S. stimulus bill, is likely to cause A) exporting countries to retaliate by placing trade barriers on their imports from Canada. B) Canadian manufacturers to become more efficient. C) Canadian companies to pay lower prices for protected products. D) most countries to reduce their own trade barriers to be able to better compete with Canadian imports at home.