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Now consider the problem of a retailer like circuit city or

Suppose Microsoft chooses to produce 80 million copies of the software per year and sells copies of the software to retailers at $199 per copy.

Now consider the problem of a retailer like Circuit City or Best Buy. Such retailers can sell as many copies of Vista they like at the prevailing market price of $200.

If Circuit City sold 2 million copies of Vista, it would earn _________ in revenue. If it sold 4 million copies of Vista, it would earn _______ in revenue.

A. $700 million; $1.2 billion

B. $800 million; $1.2 billion

C. $1.2 billion; $1.5 billion

D. $400 million; $800 million

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Microeconomics: Now consider the problem of a retailer like circuit city or

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