Scenario $10\mathrm{.}6$:

John is the manufacturer of red rubber balls $(Q).$ He has a red rubber ball manufacturing plant in California, Florida and Montana. The total cost of producing red rubber balls at each of the three plants is given by the following table:

$\backslash$table$[[$California$,$Florida,Montana$],[$Qc$,$TCc$,$Qf$,$TCf$,$Qm$,$TCm$],[1,5,1,8,1,4],[2,10,2,16,2,8],[3,15,3,24,3,12],[4,20,4,32,4,16],[5,25,5,40,5,20],[6,30,6,48,6,24],[7,35,7,56,7,28],[8,40,8,64,8,32],[9,45,9,72,9,36],[10,50,10,80,10,40],[11,$infinity,$11,$infinity,$11,$infinity$]]$

Refer to Scenario $10\mathrm{.}6.$ If red rubber balls can be produced at any of the three plants, what is the marginal cost of $5$ th red rubber ball?

A$)4$

B$)5$

C$)8$

D$)20$

E$)$ none of the above

Answer: A

Diff: $2$

Section: $10\mathrm{.}1$

Refer to Scenario $10\mathrm{.}6.$ If red rubber balls can be produced at any of the three plants, and John decides to produce $1$ red rubber ball, at which plant will he produce it$?$

A$)$ California

B$)$ Florida

C$)$ Montana

D$)$ He is indifferent between California and Florida.

E$)$ He is indifferent between Florida and Montana.

Answer: C

Diff: $1$

Section: $10\mathrm{.}1$

$448$

The demand curve and marginal revenue curve for red rubber balls are given as follows:

$Q=16-P,MR=16-2Q$

What level of output maximizes profit?

A$)0$

B$)4$

C$)5\mathrm{.}5$

D$)6$

E$)$ B$,$ C and D all maximize profit.

Answer: D

Diff: $3$

Section: $10\mathrm{.}1$

What is the profit maximizing price?

A$)10$

B$)20$