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