When the Price of a Glass of Lemonade at a Lemonade

question 162

Multiple Choice

When the price of a glass of lemonade at a lemonade stand was $1.75,400 glasses were sold.When the price was lowered to $1.50,500 glasses were sold.Assume that the demand function is linear and that the marginal and fixed costs are $0.10 and $ 25,respectively.Find the marginal profit when 300 glasses of lemonade are sold and when 700 glasses of lemonade are sold. ​

• A) ​ ,
• B) ​ ,
• C) ​ ,
• D) ​ ,
• E) ​​ ,

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Definitions:

Apparent Authority

A situation where a third party reasonably believes an individual has the authority to act on behalf of another (such as an employer), even if that person does not have actual authority.

Ratified

An agreement or decision that has been formally approved and confirmed by the required parties.

Actual Authority

The express and implied powers given by a principal to an agent to enter into contracts or take action on the principal's behalf.

Sales Force

The division of a business responsible for selling its products or services, made up of all its salesperson.