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.
If Island Bikes charges a single price to all of its customers, then how many bikes will it rent out each day?
A) 6
B) 5
C) 4
D) 3
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Relative to a monopolist charging a single
Q2: Suppose the accompanying figure illustrates the demand
Q4: Suppose a perfectly competitive firm and a
Q5: When marginal revenue is zero:<br>A)profit is maximized.<br>B)total
Q6: Suppose Island Bikes, a profit-maximizing firm,
Q7: Suppose a monopolist offers a $20 mail-in
Q8: If a monopolist calculates its marginal revenue
Q9: In exchange for a share of the
Q10: If a monopolist's marginal revenue exceeds its
Q11: Suppose Island Bikes, a profit-maximizing firm,