Suppose Island Bikes, a Profit-Maximizing Firm, Is the Only Bike

question 29

Multiple Choice

Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservation prices are listed in the table.  
$$\begin{array} { | c | c | } \hline \text { Custamer } & \begin{array} { c } \text { Reservetion Price } \\\text { (\$ /Rental) }\end{array} \\\hline \mathrm { A } & 22 \\\hline \mathrm { B } & 16 \\\hline \mathrm { C } & 12 \\\hline \mathrm { D } & \mathrm { 8 } \\\hline \mathrm { E } & 6 \\\hline \mathrm { F } & 4 \\\hline\end{array}$$ What is the socially optimal number of bikes for Island Bikes to rent out each day?

• A)6
• B)5
• C)4
• D)3

Recognize the "Big Five" personality dimensions and their components.

Identify personality traits associated with unsafe workplace behaviors.

Explain how emotional stability influences work performance and interactions in the workplace.

Define personality traits that enhance teamwork and cooperation.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Long Run

A period in economics where all inputs or factors of production can be varied, with no fixed factors, allowing for full adjustment to changes.

Economic Profit

The divergence between overall financial returns and comprehensive expenses, integrating both apparent and implied costs.

Long Run

In economics, a period in which all factors of production and costs are variable, allowing all inputs to be adjusted.