DVDs Can Be Produced at a Constant Marginal Cost of $10

question 26

Multiple Choice

DVDs can be produced at a constant marginal cost of $10 per disk, and Roaring Lion Studios is releasing the DVDs for its last two major films. The DVD for Rambeau 17 is priced at $20 per disk, and the DVD for Schreck 10 is priced at $30 per disk. What are the Lerner indices for these two movies?

• A) Both equal one.
• B) 2 and 3, respectively
• C) 0.5 and 0.67, respectively
• D) 1 and 2, respectively

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Definitions:

Epithelial Cells

Sheets of tightly packed cells that line organs and body cavities as well as make up the skin surface.

Vascular Tissue

Plant tissue involved in the transport of water and nutrients throughout the plant.

Osseous Tissue

The primary structural and supportive connective tissue in the body, forming bones through a dense matrix of calcium salts and collagen fibers.

Dense Regular

A type of connective tissue with fibers (mostly collagen) that are closely packed and aligned in parallel, providing strong, unidirectional strength.