Use the Following to Answer Questions

question 128

Multiple Choice

Use the following to answer questions:
Figure: Demand and Marginal Revenue
-(Figure: Demand and Marginal Revenue) The figure Demand and Marginal Revenue refers to a software upgrade. The producer incurred fixed costs of $10 million to produce the upgrade; the marginal cost of allowing consumers to download the upgrade is zero. To maximize profit, the producer will set a price of _____ and produce _____ upgrades.

• A) $100; 125,000
• B) $100; 250,000
• C) $50; 125,000
• D) $0; 250,000

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Definitions:

Vena Cava

A large vein carrying deoxygenated blood into the heart; there are two in humans, the superior vena cava and the inferior vena cava.

Capillaries

Microscopic blood vessels that connect arterioles and venules, facilitating the exchange of water, oxygen, carbon dioxide, and other substances between blood and tissues.

Capillaries

Tiny blood vessels that connect arterioles and venules, facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.

Osmotic Pressure

The pressure required to prevent the flow of a solvent into a solution via osmosis.