Your Pricing Structure for Canoe Rentals Encourages Group Rentals $$C = N ( 70 - N )$$

question 50

Multiple Choice

Your pricing structure for canoe rentals encourages group rentals. The total price, in dollars, you charge for renting canoes is $$C = N ( 70 - N )$$ What is the maximum charge for a group canoe rental?

• A) $1225
• B) $70
• C) $1228
• D) $35

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Definitions:

Separating Equilibrium

A situation in a game or market where different types of participants (often with private information) are sorted into different groups based on their actions or choices.

Klutzes

Informal for clumsy people who are often prone to accidents or mishandling objects.

Dull Lectures

Boring or unenthusiastic presentations or talks, often resulting in little interest or engagement from the audience.

Marginal Cost

The rise in expense associated with the production of an extra good or service unit.