If it costs View Your World, a high-end window manufacturer, $30 per window to install a higher quality glass in its windows and consumers will pay an additional $28 per window for the improvement, which of the following is true?
A) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
B) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
C) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
You might also like to view...
Regardless of how price elastic labor demand curves are, employers are unaffected by wage taxes if labor supply is perfectly inelastic.
Answer the following statement true (T) or false (F)
A consumer is willing to pay $5 for a ball. If the market price of the ball increases from $2 to $3, consumer surplus will _____
a. decrease by $1 b. increase by $2 c. reduce by $5 d. increase by $3
The Herfindahl-Hirschman index
A. is no longer applicable to the American economy. B. measures the degree of concentration within an industry. C. seldom goes above 100. D. falls as the degree of concentration rises.
If the government runs a deficit, then the government debt increases.
Answer the following statement true (T) or false (F)