Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades is producing the profit- maximizing number of sunglasses (in hundreds), what is the profit- maximizing wholesale price?
A)$120
B)$150
C)$140
D)$160

Question

Quizplus · Accepted Answer

The profit-maximizing wholesale price is the sum of the marginal cost of production ($80) and the marginal cost of distribution ($30), which equals $110. However, since none of the provided options match this calculation directly and considering the context of profit maximization, the closest and most reasonable option given is $140 (C), as it allows for a markup over the combined marginal costs to ensure profit for Slick Shades.

Slick Shades Has a Constant Marginal Cost of Production Equal