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If Slick Shades Has a Constant Marginal Cost of Production

Question 90

Multiple Choice

If Slick Shades has a constant marginal cost of production equal to $40 and the distributors have a constant marginal cost of distribution equal to $20, what is the profit- maximizing number of sunglasses (in hundreds) for Slick Shades to produce?


A) 50
B) 80
C) 70
D) 90

Correct Answer:

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