Consider the Following Scenario to Answer the Questions That Follow

question 57

Multiple Choice

Consider the following scenario to answer the questions that follow.
The Varsity,located in downtown Atlanta,is the world's largest drive-in restaurant.Located near the Georgia Tech campus,the drive-in attracts two distinct types of customers: college students and visitors to Atlanta.The owners are considering offering a student discount of $1 off their combo meal,which is regularly priced at $9.There are 5,000 students interested in purchasing a combo meal,with a maximum willingness to pay of $8.There are 5,000 visiting customers interested in purchasing the combo meal,with a maximum willingness to pay of $9.Assume that each customer,at most,will purchase a single meal and the marginal cost is $5.
-Consider the accompanying table.You are the only provider of bottled water for three cities.Because you have access to a natural spring,the marginal cost to produce an additional bottle is $0.How many bottles of water would you need to produce to maximize your profits and at what price would you sell it?

• A)11 bottles at $11 each
• B)10 bottles at $10 each
• C)15 bottles at $7 each.
• D)8 bottles at $12 each
• E)15 bottles at $7 each

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Definitions:

Smooth Muscle

A type of muscle found in the walls of internal organs and blood vessels, which is not under conscious control.

Cardiac Muscle

Specialized muscle tissue found only in the heart, characterized by involuntary control and the presence of intercalated discs for synchronized contraction.

Striated

Striped; marked by stripes or bands.

Spontaneous Contraction

Involuntary and automatic contraction of muscles, often referring to the muscles in various organs such as the heart.