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Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is...

Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd=20,000-400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. It's annual variable costs are VC=30Q+.0025Q2 and has avoidable fixed costs of $50,000.

What is KGC's profit at the profit maximizing sales price? ​ ​ a. $-24,000 b. $90,000 c. -$30,000 d. $120,000

What is the profit maximizing sales price?

​

​

a.

$30
b.

$60
c.

$45
d.

$70

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
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