A Local Video Store Estimates Its Average Customer's Demand Per

question 48

Multiple Choice

A local video store estimates its average customer's demand per year is Q = 7 − 2P,and it knows the marginal cost of each rental is $0.5.What is the annual profit that the video store expects to make on an average customer if it engages in optimal two-part pricing?

• A) $6
• B) $7
• C) $8
• D) $9

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Definitions:

Control Group

A group in an experiment or study that does not receive treatment by the researchers and is used as a benchmark to measure how the other tested subjects do.

Fertilizer

Materials applied to crops to supply essential nutrients needed for growth, typically containing nitrogen, phosphorus, and potassium.

Experimental Group

In a scientific experiment, a group in which the experimental variable is manipulated. Compare with control group.

Cladogram

A branching diagram that illustrates taxonomic relationships based on the principles of cladistics.