If it costs View Your World, a high-end window manufacturer, $26 per window to install a higher quality glass in its windows and consumers will pay an additional $15 per window for the improvement, which of the following is true?
A) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
B) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement exceeds the marginal cost.
C) View Your World should install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
D) View Your World should not install the higher quality glass because the marginal revenue from the quality enhancement is less than the marginal cost.
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For consumers, goods A and B are complementary goods. The cost of a resource used in the production of A decreases. As a result
A) the equilibrium price of B will fall and the equilibrium price of A will rise. B) the equilibrium price of B will rise and the equilibrium price of A will fall. C) the equilibrium prices of both A and B will rise. D) the equilibrium prices of both A and B will fall.
If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:
A. will be higher in the country with less leisure time. B. will be higher in the country with more leisure time. C. will be the same in both countries. D. will be greater than the level of economic well-being in each country.