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:

Elastic Clause

A provision in the U.S. Constitution that grants Congress the power to pass all laws necessary and proper for carrying out its powers, offering flexibility in lawmaking.

Tenth Amendment

An amendment to the United States Constitution that emphasizes the federal structure of the government, stating that powers not delegated to the federal government nor prohibited to the states, are reserved to the states or to the people.

Federalist Papers

A series of 85 essays written by Alexander Hamilton, James Madison, and John Jay promoting the ratification of the U.S. Constitution.

Ratification

The official way to confirm something, usually by vote. It is the formal validation of a proposed law or amendment.