Assume That the Supply Curve Is Horizontal Because Marginal Cost

question 16

Multiple Choice

Assume that the supply curve is horizontal because marginal cost is constant at $10.John,Robert,and Jimmy each value one compact disc at $20 but only Jimmy and John value a second compact disc (Jimmy at $5 and John at $15) .It follows that the optimal number of compact discs sold in this market is

• A) two.
• B) three.
• C) four.
• D) five.

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Definitions:

Attendance Policy

A set of rules or guidelines regarding the presence of individuals at a place of employment, school, or other organizations, usually outlining consequences for absence.

Commissions

Fees or percentages earned by agents or companies for facilitating transactions or services.

Trade

The exchange of goods, services, or both between entities or regions.

Rich Nations

Countries with high levels of income per capita, advanced technological infrastructure, and a standard of living significantly above the global average.