Question
In: Economics
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
Rahul Sunny answered 3 years agoRelated Solutions
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