If Slick Shades Has a Constant Marginal Cost of Production

question 29

Multiple Choice

If Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30, what is the profit- maximizing number of sunglasses (in hundreds) for Slick Shades to produce?

• A)55
• B)80
• C)40
• D)60

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Definitions:

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