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Question 3 Below, you are provided with the firm-level demand, marginal revenue, and relevant cost curves for Rockin' Rides. Rockin' Rides is a Gainesville-based firm
Question 3 Below, you are provided with the firm-level demand, marginal revenue, and relevant cost curves for Rockin' Rides. Rockin' Rides is a Gainesville-based firm that produces electric scooters in the monopolistically competitive scooter market. Suppose, initially, that this graph depicts the scenario in which scooters are not traded internationally. 9 $2400 MCT $2,000 $1,600 ATC" $1,200 $800 X- Demand $400 30 60 90 120 150 180 Quantity of Electric Scooters [in thousands) Part (i): Suppose that the United States does not trade scooters internationally. Identify the profit- maximizing number of electric scooters that Rockin' Rides will sell. A. 15,000 scooters B. 30,000 scooters C. 45,000 scooters D. 60,000 scooters E. 75,000 scooters Part (ii): Suppose that the United States does not trade scooters internationally. Identify the profit- maximizing per-scooter price that Rockin' Rides charges. A. $1,200 B. $1,400 C. $1,600 $1,800 E. $2,000 Part (ili): Suppose that the United States does not trade scooters internationally, and that Rockin' Rides produces and sells the quantity that you identified in part (i). How much profit does Rockin' Rides earn? A. $0 B. $72,000,000 C. $84,000,000 D. $87,000,000 E. The firm is incurring a loss
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