What Price Should a Firm Charge for a Package of Two

question 111

Multiple Choice

What price should a firm charge for a package of two shirts given a marginal cost of $4 and an inverse demand function P = 8 − 2Q by the representative consumer?

• A) $4
• B) $8
• C) $12
• D) $16

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Definitions:

Motivation

An inferred process within a person or animal that causes movement either toward a goal or away from an unpleasant situation.

Unpleasant Situation

A scenario or event that is disagreeable, uncomfortable, or causes distress to an individual.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise.

External Rewards

Benefits or incentives provided by an external source, such as money, praise, or recognition, that motivate behavior.