Slick Shades Has a Constant Marginal Cost of Production Equal

question 24

Multiple Choice

Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20. If Slick Shades is producing the profit- maximizing number of sunglasses (in hundreds) and charging the profit- maximizing wholesale price, what is the retail price?

• A)$150
• B)$120
• C)$140
• D)$160

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Definitions:

Serotonin

A neurotransmitter that is believed to play a key role in maintaining mood balance.

Depression

A common and serious medical illness that negatively affects how you feel, the way you think, and how you act, leading to feelings of sadness and/or a loss of interest in activities once enjoyed.

Tranquilizers

Drugs commonly prescribed for patients who complain of unhappiness, anxiety, or worry.

Gamma-Aminobutyric Acid

A neurotransmitter in the brain that plays a key role in regulating neuronal excitability and is involved in reducing anxiety, promoting sleep, and managing muscle tone.