​Half of All Your Potential Customers Would Pay $16 for Your

question 62

Multiple Choice

​Half of all your potential customers would pay $16 for your product but the other half would only pay $10.You cannot tell them apart.Your marginal costs are $4.If you set the price at $10,the expected profit is:

• A)​$3
• B)$4
• C)$5
• D)​$6

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Definitions:

Unauthorized Agent

An individual who acts on behalf of another without having the legal or official permission to do so.

Principal

The amount of money that is originally invested or loaned, prior to interest or profit.

Primarily Liable

Refers to the party in a financial transaction or contractual agreement who has the direct responsibility to perform or pay.

Instrument

A formal legal document that records a right, duty, or the execution of a transaction, such as contracts, deeds, and promissory notes.