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

question 86

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 reservations prices are listed in the table.  
$$\begin{array} { | c | c | } \hline \text { Custamer } & \begin{array} { c } \text { Reservetion Price } \\\text { (\$ /Rental) }\end{array} \\\hline \mathrm { A } & 22 \\\hline \mathrm { B } & 16 \\\hline \mathrm { C } & 12 \\\hline \mathrm { D } & \mathrm { 8 } \\\hline \mathrm { E } & 6 \\\hline \mathrm { F } & 4 \\\hline\end{array}$$ Suppose Island Bikes knows that customers whose reservation prices are at least $10 always rent bikes before noon, while those whose reservation prices are below $10 never do so. If Island Bikes charges a different price in the morning and in the afternoon, then what will be its daily economic profit?

• A)$27
• B)$32
• C)$33
• D)$39

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Definitions:

Phagocytic Cells

A type of immune cell capable of engulfing and absorbing bacteria and other small cells and particles.

Neutrophils

A type of white blood cell that helps heal damaged tissues and resolve infections.

Monocytes

A type of white blood cell that plays a key role in the immune system by fighting infections and removing dead or damaged cells.

Histamine

A biogenic amine involved in local immune responses, regulating physiological function in the gut and acting as a neurotransmitter.