Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business
If the marginal cost of installing carpet is a constant $1 per sq yard, what price does Bob charge each segment?
Setting MR = 1 in both markets yields a price of $5.50 in the residential market and $8 in the business market.
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The production possibilities frontier is the
A) maximum output that can be produced at an opportunity cost of zero. B) minimum output that can be produced when resources are used inefficiently. C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology. D) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing. E) maximum opportunity cost combinations of goods and services.
Which of the following CAN be true about a person who is officially considered unemployed?
A. That person has a job B. That person is an active member of the military C. That person is a prisoner D. That person has been turned down for employment in the last four weeks