If It Costs View Your World, a High- End Window

question 160

Multiple Choice

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 is less than the marginal cost.
• B)View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
• C)View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
• D)View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.

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Definitions:

UCC

Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions.

Disposal

The act or process of getting rid of something, especially by throwing away or recycling.

Cash Flow

The net amount of cash being transferred into and out of a business, affecting its liquidity.

Creditors

Entities or individuals that a company or person owes money to.