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 what price will it charge?
A) $4
B) $8
C) $12
D) $16
Correct Answer:

Verified
Correct Answer:
Verified
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